PDVSA speeds up Tether payments to dodge rising US sanctions. The new payment conditions will require half of the amount in USDT at the beginning. PDVSA advises new clients interested in the oil industry to invest in cryptocurrency.

According to Reuters, the Venezuelan state-owned oil and gas company PDVSA has chosen to speed up the use of stablecoins like Tether (USDT) for transactions. This decision comes as the country faces increased sanctions from the US.

The report mentions that the Biden administration will not lift oil sanctions on Venezuela because President Nicolas Maduro did not fulfill his election promises. As a result, the US Treasury has instructed PDVSA's suppliers and customers to halt transactions by May 31.

Venezuela will face challenges in boosting its oil exports and production as it can only trade with US-approved companies. PDVSA started switching oil sales to US dollar-linked Tether (USDT) last year for stability.

The recent statements from the Biden administration are driving this shift further as Venezuela aims to minimize the risk of losing funds in foreign banks. PDVSA has introduced changes to oil transactions, requiring half of the payment for each shipment in stablecoin USDT. Additionally, new customers interested in oil business must have digital coins.

In 2023, PDVSA faced scrutiny when auditors discovered around $21 billion in unexplained receivables, related to various cryptocurrencies. Pedro Tellechea became Venezuela's oil minister after the scandal and under his leadership, the country's oil exports have increased, reaching four-year highs of approximately 900,000 barrels per day last month with the help of US sales licenses.