Venezuela PDVSA Speeds Oil Sales With Tether Amid US Ban

Venezuela’s state-run oil company PDVSA is accelerating the transition of oil sales to Tether to avoid the risk of profits frozen in overseas bank accounts due to the reimposition of U.S. oil sanctions. Reuters.

Recent actions by the U.S. Treasury have hampered Venezuelan oil operations, with deals requiring individual approval until May 31. PDVSA has been switching to USDT since last year, making payments stable against the US dollar.

Petroleum Minister Pedro Telexea mentioned considering digital currencies for oil contracts. PDVSA currently requires 50% payment in USDT for spot oil transactions. This change follows a $21 billion corruption scandal related to past cryptocurrency transactions.

Under Telekea’s leadership, crude oil exports soared to 900,000 barrels a day in March, the highest level in four years. New customers are required to hold cryptocurrencies even in contracts that do not specify USDT.

Traders find PDVSA’s USDT requirements difficult without intermediaries due to compliance issues. Despite the stability of USDT, global oil trading still relies on traditional currencies. PDVSA’s move reflects a broader trend towards the adoption of digital currencies in global trade.

Also read: Ivorypay, Tether Partner Powering Cryptocurrency in Africa

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