Venezuela’s state-run oil company, PDVSA, is accelerating the shift of its oil sales to Tether to avoid the risk of having its revenues frozen in foreign bank accounts due to the U.S. reimposition of oil sanctions, as reported by Reuters.
The U.S. Treasury’s recent move hampers Venezuela’s oil business, requiring individual approvals for transactions until May 31. PDVSA has been shifting to USDT since last year, stabilizing payments against the U.S. dollar.
Oil Minister Pedro Tellechea mentioned considering digital currencies for oil contracts. PDVSA now demands a 50% payment in USDT for spot oil deals. This shift follows a $21 billion corruption scandal linked to past crypto transactions.
Under Tellechea’s leadership, oil exports surged to 900,000 barrels per day in March, the highest in four years. New clients must hold cryptocurrency, even for contracts not specifying USDT.
Traders find PDVSA’s USDT requirement challenging without intermediaries due to compliance issues. Despite USDT’s stability, global oil transactions still rely on traditional currencies. PDVSA’s move reflects a broader trend towards digital currency adoption in global trade.
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