Venezuela is moving quickly to use cryptocurrency for selling crude oil and fuel abroad, amid sanctions.
Venezuela is a country in northern South America with mainland and Caribbean islands. Venezuela had a mixed stance on cryptocurrency regulations. However, cryptocurrencies are not fully regulated but over the past few years, Cryptocurrency has become popular in this country because it helps with transactions between countries. This country has limited access to traditional banks from other countries because of the US financial sanctions on this country.
According to some people close to the plan, Venezuela’s state-run oil company PDVSA is planning on giving a push for its plan to increase the use of Crypto payments, in order to easily bypass the US financial sanctions.
For now, PDVSA showed inclination toward the top popular stablecoin USDT (Tether).
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Last week, the US Treasury ordered all the PDVSA’s customers and suppliers to stop transactions before 31 May because special permission allowing the dealings wasn’t renewed and it happened because Venezuela failed to make certain political changes.
So now, PDVSA needs separate permission from the US to trade oil with Venezuela.
Last week in an interview with Reuters, Venezuelan oil minister Pedro Tellechea said that the country has multiple currencies as an option to use in the payment which also includes digital currencies.
Pedro said that Cryptocurrencies might be the preferred payment method moving forward.
For several years, the US dollar has been the best choice of currency for countries to conduct international trade but in 2023 the rising inflation forced some countries to use their native fiat currency, instead of the US dollar, to fight against inflation & simultaneously support the value of their corresponding native currency.
However, the latest move by Venezuela is going to take time to completely shift to a crypto payment method for international trade but surely it will be an example for all the other countries which are facing a similar kind of situation.
Read also: Analyst says Polygon (Matic) may pump to $55, it is not dead
Venezuela pushing crypto payment adoption to sell oil in international market
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