Venezuela is swiftly incorporating cryptocurrency into its crude oil and fuel sales abroad in response to sanctions. The country, located in northern South America with mainland and Caribbean islands, previously had varying attitudes towards cryptocurrency regulations. While not fully regulated, cryptocurrency has gained popularity in recent years in Venezuela due to facilitating international transactions. Limited access to traditional banks from other countries, due to US financial sanctions, has prompted Venezuela’s state-run oil company PDVSA to push for increased Crypto payments. PDVSA has shown a preference for the popular stablecoin USDT (Tether) amidst the reimposed US sanctions on Venezuela’s oil industry. Some contracts now stipulate digital currencies as the primary payment method for PDVSA’s new customers.

Following a US Treasury order for PDVSA’s partners to halt transactions by May 31 due to failed political changes in Venezuela, PDVSA now requires separate US permission to trade oil. In an interview with Reuters, Venezuelan oil minister Pedro Tellechea hinted at using multiple currencies, including digital ones, for payments going forward. The shift towards cryptocurrencies may take time to fully materialize, as Venezuela navigates international trade challenges. Nonetheless, Venezuela’s move is seen as setting an example for other countries facing similar situations.



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