Venezuela Accelerates Cryptocurrency Shift Amid Returning Oil Sanctions

Venezuela's state-run oil company, PDVSA, is accelerating its shift towards using digital currencies for crude and fuel exports as the United States reimposes oil sanctions on the country. The move aims to mitigate the risk of sale proceeds being frozen in foreign bank accounts due to the sanctions. PDVSA had already been gradually transitioning oil sales to USDT, a digital currency pegged to the U.S. dollar, since last year. This acceleration comes as the U.S. Treasury Department requires PDVSA's customers and providers to wind down transactions by May 31 under a general licence that was not renewed. The use of digital currencies, particularly USDT, is becoming more prevalent in PDVSA's transactions, with the company requiring prepayment in USDT for half of each cargo's value. This shift is expected to continue despite potential challenges, such as compliance issues and reliance on intermediaries.