The oil industry in Venezuela will soon be back under U.S. sanctions after a six-month pause, and the economic impact has reportedly driven the South American nation to accelerate its adoption of cryptocurrency in oil trading.

As part of efforts to encourage Venezuelan leadership to conduct a fair presidential election in July, the U.S. implemented General License 44, which authorized transactions related to oil or gas sector operations in Venezuela. However, after opposition candidate Maria Corina Machado was banned from running by the government of President Nicolás Maduro, the license is being revoked.

Amid the political turmoil, Venezuela’s state-run oil company PDVSA plans to increase the use of digital currencies in its crude and fuel exports. According to sources cited by Reuters, the move is intended to reduce the risk of sale proceeds getting frozen in foreign bank accounts due to the revived sanctions.

Venezuela has been using crypto for years, as President Maduro has himself confirmed. But Reuters reports that PDVSA this year moved many spot oil deals to a contract model that demanded prepayment for half of each cargo’s value in the USDT stablecoin—even during the sanctions’ pause. The return of oil sanctions is simply speeding up this shift.<

Go to Source to See Full Article
Author: Jose Antonio Lanz

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details