PDVSA, Venezuela's state-owned oil company, is gearing up to increase its utilization of the Tether stablecoin for exporting crude and fuel oil, following reports of impending US sanctions on the country, as stated by Reuters.

Recently, Reuters disclosed that the Biden administration won't extend the certification easing oil-related sanctions due to President Nicolas Maduro's failure to fulfill his election promises. Amidst this, the US Treasury has granted PDVSA's customers and suppliers until May 31st to cease transactions.

PDVSA's shift towards USDT aims to mitigate the risk of profits from oil sales being frozen in foreign bank accounts due to US sanctions, with the company gradually transitioning since 2023. By converting non-swap spot oil deals into prepayment contracts in USDT, PDVSA is targeting new clients equipped with cryptocurrency in digital wallets.

Operating in crypto for oil transactions circumvents trade compliance oversight, requiring PDVSA and its trading partners to rely on intermediaries, potentially impacting profit margins. Despite US sanctions, in 2023, Venezuela exported nearly 700,000 barrels of oil daily, with 65% going to China and 19% to the US.