Venezuelan state oil company PDVSA is preparing to increase the use of Tether 's USDT stablecoin to export crude and fuel oil after the US decided to reimpose sanctions on the South American country.
The Biden administration will not renew authorization to ease oil sanctions on Venezuela after President Nicolas Maduro failed to deliver on his election promises. The US Treasury Department has asked PDVSA customers and suppliers to close transactions until May 31.
PDVSA's switch to USDT is aimed at minimizing the risk of oil sales profits being frozen in overseas bank accounts due to US sanctions. The company is said to be gradually shifting its oil sales to USDT since last year.
At the end of the first quarter, PDVSA converted many non-swap spot oil trades to contracts requiring prepayment in USDT. The Venezuelan oil company is also asking new customers looking to make oil transactions to keep cryptocurrencies in a digital wallet.
In 2023, when the US eased sanctions, Venezuela exported nearly 700,000 barrels of oil per day, 65% of which went to China and 19% to the US.
Join Bitcoin Magazine's Telegram: https://t.me/tapchibitcoinvn
Follow Twitter (X): https://twitter.com/tapchibtc_io
Follow Tiktok: https://www.tiktok.com/@tapchibitcoin
Annie
According to The Block
