Venezuelan oil expands use of USDT for payments! to counter U.S. sanctions

This site (120btC.coM): According to a Reuters report today (23rd), because Venezuela failed to adopt electoral reform measures as required by the United States, the U.S. Treasury Department last week requested that Venezuela’s state-owned Oil company PDVSA’s customers and suppliers have until May 31 to end transactions, which will make it harder for Venezuela to increase oil production and exports as the company must wait for individual authorization from the United States to do business with it.

PDVSA has been slowly shifting oil sales to USDT trading since last year, and the resumption of oil sanctions is accelerating the shift to reduce oil sales proceeds that are held in foreign banks due to sanctions, people familiar with the matter said. Risk of account freezing.

Venezuela’s Oil Minister Pedro Tellechea also said last week that according to contract provisions, oil transactions can use different currencies, and in some contracts, digital currencies may be the preferred payment method.

Continue to expand the adoption of USDT

The U.S. dollar is the preferred currency for transactions in the global oil market. Payment with cryptocurrencies is not common, but by the end of the first quarter of this year, PDVSA has eliminated many Futures spot oil trading was moved to a contract model that required half of the value of each shipment to be paid in advance via USDT.

PDVSA also requires that any new customers applying to trade oil should hold cryptocurrency in a digital wallet, a person familiar with the matter said, even in some old contracts that did not explicitly provide for the use of USDT. Customers are asked to implement this requirement.

US Sanctions Strike

Most companies turned to intermediaries last October after the United States issued six-month licenses allowing traders and former PDVSA clients to resume business with Venezuela. Increasing reliance on intermediaries to conduct transactions to meet digital trading requirements may help PDVSA circumvent sanctions, but it means a small share of oil proceeds will fall into the hands of intermediaries.

Pedro Tellechea said last week that the country hopes to continue to sign oil sales contracts and crude oil and natural gas project expansions during the 45-day transition period set by the United States, and will require customers to apply for specific licenses after the transition period But oil analysts expect Venezuela’s oil production, exports and revenue to hit caps soon even if the United States issues individual licenses.

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