Venezuela is speeding up its implementation of cryptocurrency in crude and fuel exports, following the US reimposing oil sanctions on the country. According to unnamed people familiar with the plan, Venezuela’s state-run oil company PDVSA is working on accelerating its plan to increase digital currency usage to work around these sanctions.
Last week, the US Treasury gave PDVSA’s customers and providers until May 31 to limit transactions under a general license it did not renew due to a lack of electoral reforms. Companies will have to wait for individual U.S. authorizations to do oil business with Venezuela.
PDVSA To Speed Up Plan For Digital Payments
PDVSA has already started its plan to shift towards digital currency. In 2023, the company began slowly moving oil sales to USDT. Following these reignited sanctions though, the process will have to be sped up. According to close sources, the shift to digital currencies reduces the risk of sale proceeds getting frozen in foreign bank accounts due to the measures.
Also Read: Multiple SEC Lawyers Resign Following Sanctions From DEBT Box Case
“We have different currencies, according to what is stated in contracts,” Venezuelan oil minister Pedro Tellechea told Reuters last week. According to Tellechea, in some contracts, digital currencies might be the preferred payment method moving forward.
Currently, the US dollar is the preferred currency for transactions in the global oil market. However, after a rough 2023, global trust in the greenback has begun to deteriorate. Payments in cryptocurrency are growing popular in multiple countries, although they aren’t too frequent yet. Veneuzela’s shift to digital currency transactions is going to take time but can set an example for other countries looking to navigate around sanctions. Especially in a growingly popular cryptocurrency market, Venezuela may not be the last nation to pursue such a plan.