Opt for Crypto: Venezuela’s Strategy Against U.S. Sanctions
Venezuela is stepping up its adoption of cryptocurrencies for fuel transactions in response to U.S. sanctions targeting the state-owned oil company PDVSA.
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Venezuela is stepping up its adoption of cryptocurrencies for fuel transactions in response to U.S. sanctions targeting the state-owned oil company PDVSA.
The U.S. Treasury has directed PDVSA's clients and suppliers under its jurisdiction to halt transactions with the company by May 31st. Any dealings with PDVSA post-deadline will require a special authorization from the U.S. government.
Pedro Tellechea, Minister of Petroleum of Venezuela, noted that although many transactions still utilize fiat currencies, digital currencies are increasingly becoming the preferred method. Venezuela is now mandating that all new clients possess a digital wallet with cryptocurrencies and is integrating this requirement into some existing contracts.
Clients of the Venezuelan company have pointed out that USDT transactions meeting PDVSA's stipulations “don't pass any trader's compliance department”, leading them to operate through intermediaries.
Since early 2023, Venezuela has been shifting its oil sales to accept payment in USDT. In March, the country exported approximately 900,000 barrels of oil, marking the highest level in the last four years.
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