pdvsa

According to The Wall Street Journal, Tether's role as the world's leading stablecoin has been influenced by Maduro, as Tether serves as an important tool for the Venezuelan state oil company (Petróleos de Venezuela, abbreviated as PdVSA) to evade sanctions, being used as a currency for oil trade settlements and providing an economic lifeline for Venezuelans suffering from the plummeting value of their national currency, the bolívar.A spokesperson for Tether responded that the company complies with all applicable U.S. and international sanctions regulations and works closely with U.S. authorities, including the Office of Foreign Assets Control, and regularly assists law enforcement in freezing addresses related to illegal activities or sanctions violations upon legitimate requests.

ChainCatcher news, according to Reuters, Venezuela's state oil company PDVSA plans to increase the use of Tether to export crude oil and fuel oil, a move prompted by the recent decision of the United States to reimpose sanctions on the country.Last year, PDVSA began gradually shifting its oil sales to Tether. The company plans to convert many spot oil transactions into contracts that require prepayment in Tether and is asking new customers to hold cryptocurrency for transactions. Since cryptocurrency transactions are not regulated by any trade compliance departments, PDVSA and its trading partners need to work with intermediaries, which may reduce the company's profit margins.

ChainCatcher news, according to Reuters, three insiders revealed that as the United States reimposes oil sanctions on Venezuela, the state-owned oil company PDVSA plans to increase the use of digital currencies in its crude oil and fuel exports.It is reported that the U.S. Treasury Department requested PDVSA's customers and suppliers to end transactions by May 31. This move will make it more difficult for Venezuela to increase oil production and exports, as companies will have to wait for separate authorization from the U.S. to conduct business with Venezuela.Since last year, PDVSA has been slowly shifting towards USDT in oil sales, which is pegged to the U.S. dollar. Insiders stated that the restoration of oil sanctions is accelerating this shift, aimed at reducing the risk of sales revenue being frozen in foreign bank accounts due to sanctions.