Reuters reports, citing sources, that due to the recent U.S. decision to reimpose sanctions on Venezuela, the country’s state oil company PDVSA is trying to add Tether’s stablecoin USDT as a payment option for crude oil and fuel oil exports.
Reuters reported last week that the Biden administration would not renew a license aimed at easing sanctions on Venezuelan oil after President Nicolas Maduro failed to deliver on his election promises. The U.S. Treasury Department has asked PDVSA’s customers and suppliers to cease trading under the general license by May 31, according to Reuters.
PDVSA’s move to USDT is aimed at minimizing the risk of oil sales profits being frozen in overseas bank accounts due to U.S. sanctions, people familiar with the matter told Reuters. According to reports, the company has gradually begun to shift the charging method for oil sales to USDT since last year.
By the end of the first quarter, PDVSA reportedly had moved many non-swap spot oil trades to a contract that required upfront payment in USDT. The Venezuelan oil company is also requiring new customers looking to trade oil to hold cryptocurrencies in a digital wallet.
One trader told Reuters that because cryptocurrencies do not meet the requirements of any trade compliance department in oil trading, PDVSA and its trading partners rely on cooperation with intermediaries. However, this could mean lower profit margins for the company.
According to a Reuters report in January 2023, when the United States eased sanctions, Venezuela was exporting nearly 700,000 barrels of oil per day, 65% of which was shipped to China and 19% to the United States.
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