Faced with increased Western sanctions, Venezuela changed its oil trade strategy. PDVSA, the state oil firm, now uses cryptocurrency, specifically Tether (USDT), to oversee international transactions.
According to Reuters, PDVSA would gradually use USDT for spot oil trades that need prepayment. This strategy seeks to avoid penalties that could freeze oil earnings in foreign banks.
The United States recently declined to renew a license that eased oil sanctions against Venezuela, putting pressure on the country's oil export recovery. PDVSA's shift to crypto aims to sustain revenue flow while potentially lowering profit margins owing to middleman expenses.
This move comes after a corruption investigation exposed $21B in mismanaged funds from PDVSA. Venezuela insists on diversifying payment options, directing new customers to crypto wallets to enable oil purchases.
