April 25, 2024
By Anjali Kochhar
Venezuela’s state-run oil corporation, PDVSA, has taken a bold step into the world of cryptocurrencies, focusing especially on Tether (USDT), in an attempt to get around the harsh sanctions.
In 2023, PDVSA began experimenting with Tether, according to a new Reuters story. This was the nation’s second attempt to use digital assets to get beyond international regulations.
The choice to support Tether, the biggest stablecoin based on the dollar worldwide, was made in the middle of US sanctions that are being tightened to choke off Venezuela’s economic activity.
As the possibility of having international bank accounts frozen approaches, PDVSA views USDT as a possible lifesaver, providing a decentralised substitute for conventional banking channels.
Reuters’ findings reveal PDVSA’s reliance on intermediaries to facilitate crypto transactions, strategically obscuring the on-chain trail, thereby bolstering the effectiveness of their sanctions-evasion strategy.
Venezuela’s foray into the realm of cryptocurrency isn’t new, as the nation first ventured into this domain in 2018, with aspirations to diminish reliance on the US dollar. However, this initial endeavour failed to gain significant traction, attributed to the lack of support from major exchanges and the government’s subsequent decision to discontinue the program in early 2024.
The utilisation of Tether underscores Venezuela’s determination to navigate the intricate web of international sanctions, reflecting a broader trend wherein nations explore unconventional avenues to safeguard their economic interests amidst geopolitical challenges.
As PDVSA continues its exploration of crypto pathways, the global community keenly observes the evolving dynamics at the intersection of digital finance and geopolitical strategy.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
