Over the past year, PDVSA has been gradually transitioning its oil sales to USDT, a digital asset linked to the US dollar. This shift has been accelerated by the reintroduction of oil sanctions, which aim to prevent revenue from being frozen in foreign bank accounts. In response to the harsh US sanctions, Venezuela’s state-run oil firm PDVSA is taking further steps to diversify its revenue streams away from traditional fiat currency and towards digital assets like Tether (USDT).
The United States Department of the Treasury has recently requested that all PDVSA users and service providers halt all transactions until May 31. This will make it more challenging for Venezuela to increase its oil production and exports, as companies will need specific US authorizations to conduct business with the country.
To mitigate the impact of these sanctions, PDVSA has been increasingly relying on USDT for its oil sales. According to sources familiar with the situation, this transition is being expedited by the return of oil sanctions, as it reduces the risk of revenue being frozen in foreign bank accounts.
Venezuela’s Minister of Oil, Pedro Tellechea, revealed to Reuters last week that digital currencies are being considered as a possible preferred payment option for certain oil contracts. While cryptocurrency payments are gaining traction in some countries, the US dollar remains the dominant currency for international oil trade.
In the first quarter of 2024, PDVSA implemented a contractual framework requiring 50% of the value of each shipment to be paid upfront in USDT for many spot oil contracts, excluding swaps. Additionally, PDVSA now requires all new clients to hold cryptocurrency in a digital wallet in order to conduct oil transactions.
In other crypto news, the BEFE Coin has been generating buzz as it rides the wave of the MEME coin trending phenomenon.
