Venezuela Boosts Cryptocurrency Use in Oil Trades Amid Sanctions

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PDVSA now requires digital wallets for oil trades to avoid U.S. banking sanctions.
Amid sanctions, PDVSA transitions oil sales to the USDT cryptocurrency to maintain financial flow.
U.S. sanctions push PDVSA to obtain individual trading authorizations, complicating exports.

Amid tightening U.S. sanctions, Venezuela’s state-owned oil company, PDVSA, is escalating its shift towards cryptocurrency for oil transactions as reported by Reuters. Consequently, the company now requires new customers to possess digital wallets for trading. This strategic pivot aims to sidestep restrictions that impede access to traditional banking systems.

Significantly, this move comes after the U.S. Treasury Department decided not to renew a general license, giving companies until May 31 to conclude their dealings under this arrangement. The decision is a response to Venezuela’s stalled electoral reforms. Hence, companies must now seek individual authorizations from the U.S. to deal with PDVSA. This requirement complicates efforts to boost Venezuela’s oil production and exports.

Moreover, PDVSA has adopted the digital currency USDT, commonly known as Tether. Tether is pegged to th…

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