Opinion: Venezuela's state-owned oil company PDVSA accelerates the use of USDT to circumvent US sanctions

Venezuela’s state-owned oil and gas company PDVSA reportedly plans to accelerate the use of cryptocurrencies, especially the largest stablecoin by market capitalization, to circumvent U.S. sanctions, CryptoPotato reported. PDVSA will gradually integrate USDT into oil sales starting in 2023, and has reportedly instituted new policies requiring new customers to have digital wallets that hold cryptocurrencies. According to Reuters, PDVSA’s intention to accelerate the use of USDT for crude oil and fuel exports came after the United States refused to renew a general license that temporarily lifted sanctions on Venezuela’s oil and gas industry. PDVSA also reportedly requires new customers to have digital wallets that hold cryptocurrencies, a requirement that also extends to old contracts, which do not explicitly provide for the use of USDT. Although the use of cryptocurrencies in oil and gas transactions is not common, PDVSA hopes to reduce the risk of profits being frozen in foreign bank accounts due to sanctions by increasing the use of USDT.