Venezuela ramps up crypto adoption as US re-imposes oil sanctions
State oil company PDVSA plans to increase the use of cryptocurrency in its crude and fuel exports, sources told Reuters.
The US Treasury Department recently gave PDVSA clients and suppliers until May 31 to wind down operations under a general license. The move will make it harder for Venezuela to boost oil production and exports as companies will need US permission to do business with the country.
PDVSA has been gradually shifting its oil sales to the USDT stablecoin. The imposition of the US oil sanctions is accelerating this transition, a strategy aimed at reducing the risk of funds being frozen in foreign bank accounts.
“We have different currencies, depending on what is established in the contracts,” Venezuelan Oil Minister Pedro Tellechea told Reuters last week, adding that cryptocurrency could be the preferred form of payment in some contracts.
While the US dollar remains the dominant currency in global oil market transactions, cryptocurrency payments are gaining traction in some countries.
PDVSA was embroiled in a corruption scandal last year after it emerged that some $21 billion in outstanding receivables for oil exports in recent years could not be accounted for, partly related to earlier deals involving other cryptocurrencies.
Under the leadership of Tellechea, who took over the Venezuelan oil ministry in the wake of the scandal, the country’s oil production has increased, reaching 900,000 barrels per day in March, the highest level in four years.
In late Q1, PDVSA switched many of its non-swap spot oil trades to a contract model that requires upfront payment in USDT for half the value of each cargo.
PDVSA is also requiring any new clients signing up to do oil trades to hold crypto in a digital wallet.
