Tuesday, 18 June 2024
Trending
AmericasCrypto

Venezuela uses the cryptocurrency Tether to get around oil restrictions

  • PDVSA intends to rely more on digital currencies for the export of fuel and petroleum.
  • PDVSA’s suppliers and clients have until May 31 to complete all outstanding transactions.
  • Pedro Tellechea acknowledged the use of several currencies in contracts and digital currencies might be the best option for payment.

As the US reimposes oil sanctions on Venezuela, the nation’s state-run oil corporation, PDVSA, intends to rely more on digital currencies for the export of fuel and petroleum.

Due to the US Treasury Department‘s decision not to renew a general license,PDVSA’s suppliers and clients have until May 31 to complete all outstanding transactions.

Oil Restrictions

Since businesses will now need to seek specific U.S. authorizations to conduct business with Venezuela, it is anticipated that this decision may impede efforts to expand oil output and exports from the country. PDVSA has been gradually switching its oil sales to USDT (Tether), a digital currency that is correlated with the US dollar, since last year.

This change is happening faster now that oil sanctions are back in place because PDVSA wants to lessen the chance that the measures would freeze sale revenues in international bank accounts.

Pedro Tellechea, the minister of oil for Venezuela, acknowledged the use of several currencies in contracts and mentioned that, in some circumstances, digital currencies might be the best option for payment.

With the latest U.S. license, trading houses and previous PDVSA clients can now do business with Venezuela again; but, to comply with the rules for digital transactions, the majority have turned to intermediaries. Even though PDVSA might be able to get around sanctions by depending more and more on middlemen for transactions, less oil revenue will probably end up in the company’s pockets.

Related posts
CryptoCrypto Exchange

Bybit Integrates Apple Pay for Secure Crypto Purchases

Bybit users can now use Apple Pay for secure crypto transactions. Integration eliminates the need…
Read more
BlockchainCrypto

Navigating the Future: Biden Administration and Blockchain Innovation

Biden Administration officials and industry leaders will convene in D.C. to discuss U.S. blockchain…
Read more
CryptoEthereum

Bloomberg analyst: Ethereum ETFs will launch on July 2nd

July 2nd Launch: Spot Ethereum ETFs set to debut, signaling institutional acceptance. Price…
Read more
Newsletter
Become a Trendsetter

To get your breaking, trending, latest news immediately without diluting its truthfulness join with worldmagzine immediately.

Leave a Reply

Your email address will not be published. Required fields are marked *