Venezuela plans to speed up USDT adoption following US sanctions: Reuters

The Big Whale

— 1 min read
  • Venezuela's PDVSA to increase Tether stablecoin use for oil exports amid U.S. sanctions.
  • Biden administration not renewing oil sanctions license due to Maduro's unmet promises.
  • PDVSA shifting oil sales to USDT to avoid frozen profits in overseas accounts.
  • Intermediaries used for crypto transactions in oil, impacting profit margins; 2023 exports detailed.

Summary : Venezuela's state-run oil firm, PDVSA, is planning to increase its use of the Tether stablecoin for exporting crude and fuel oil, in response to the recent reimposition of sanctions by the US. The move is aimed at minimizing the risk of oil sale profits being frozen in overseas bank accounts due to the sanctions. PDVSA has been gradually shifting its oil sales to USDT since last year and has already moved many non-swap spot oil deals to a contract that requires prepayment in USDT. The company is also asking new customers to hold crypto in a digital wallet for oil transactions. However, using crypto for oil transactions means relying on an intermediary and may result in lower profit margins. In 2023, before the sanctions were eased, Venezuela exported nearly 700,000 barrels of oil per day, with China receiving 65% and the US receiving 19%.
Original article by TheBlock (published on Apr 23, 2024, 3:47 AM).

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