According to Reuters, Venezuela’s state-run oil giant PDVSA is expediting the move of its oil sales to Tether in order to avoid having its revenues frozen in international bank accounts as a result of the United States’ reimposition of oil sanctions.
Pedro Tellechea, the energy minister, discussed considering digital currencies for oil contracts. PDVSA now expects a 50% payment in USDT for spot oil transactions. This shift comes after a $21 billion corruption scandal tied to previous cryptocurrencycurrency transactions.
The recent move by the US Treasury, which requires individual permits for transactions until May 31, hampered Venezuela’s oil operations. PDVSA has been using USDT since last year to stabilize payments against the US dollar.
Under Tellechea’s direction, oil exports increased to 900,000 barrels per day in March, the highest level in four years. New clients must possess cryptocurrencycurrency, even if their contracts do not specify USDT.
Due to compliance concerns, traders find the PDVSA’s USDT demand difficult to meet without the assistance of intermediaries.
Despite the stability of the USDT, worldwide oil transactions continue to be conducted in traditional currencies. PDVSA’s action reflects a larger trend of digital currency acceptance in global trade.
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