Charlotte from Denver

Registered at the crypto broker eToro 29 minutes ago.

» Try eToro too
Do not show again

The political relationship between Venezuela and the United States has been rocky for some time…

The American government cites issues such as corruption within the Maduro regime while Venezuela has been at odds with US foreign policy since as far back as the late 1990s.

While these observations aren’t necessarily new, Venezuela has other options at its disposal that weren’t present in the past.

Nothing New Under the Sun

Previously, the US would impose economic sanctions upon major Venezuelan sectors such as the oil and gas industry in the hopes that these actions would result in political changes. Unsurprisingly, Venezuela tended to suffer from the brunt of these effects.

Cryptocurrencies are now beginning to change the state of play. What’s recently been happening and how might these events lead to an even wider adoption of crypto payments – including Bitcoin and USDT – as a whole?

Yet Another Round of Sanctions

Believe it or not, oil and gas comprise an incredible 95% of all Venezuelan exports and a staggering 25% of their GDP. This is why the decision of the United States to target the state-run oil company PDVSA could come as a major blow to the Venezuelan economy.

However, cryptocurrencies provide a way to legally (yes, we said legally) sidestep any sanctions that might soon be imposed. How might this take place and why could it represent an extremely attractive option?

Rating: 9.17/10
Supply: 76,310,896,640 / 32,297,366,522
Release date: June 10, 2014

Description: Discover Tether and be part of the cryptocurrency revolution.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

All About Decentralisation

Cryptocurrencies have always been associated with their unique decentralised nature. Although this is convenient for the average consumer who may be concerned about the amount of influence that institutions such as central banks exert, it’s also practical in terms of speedy payments.

Simply stated, cryptocurrencies allow large companies such as PDVSA to carry out transactions without the need for banks to serve as intermediaries. The fact that United States sanctions rely upon a more traditional financial framework has allowed the crypto ecosystem to represent a tempting option that could blunt the effects of these very same sanctions.

We can now begin to understand why PDVSA has begun to shift its financial operations into the cryptocurrency sector; particularly USDT. There are two main reasons behind this strategy:

  • Everyday transactions may not be subject to newly approved sanctions.
  • The chances that sales proceeds will be trapped within international accounts is markedly reduced.

So, we can see that PDVSA has begun to think outside of the proverbial box. You might still be surprised that this ins’t the first time such measures have been considered.

Past Experiments

Venezuela hasn’t been sitting on the sidelines in terms of cryptocurrencies. In fact, they actually introduced their own token known as the “Petro” in 2018. Why haven’t we heard more about this groundbreaking move?

Well, for some of the very same reasons that the US wishes to impose sanctions. Petro was tainted by mismanagement and corruption from the very beginning. This ill-conceived experiment was terminated in March 2023; resulting in ten arrests and signalling the death of Petro. Rest in Peace.

Are There Any Inherent Risks Associated with a Shift to USDT?

At first glance, it seems perfectly logical that the Venezuelan oil and gas sector could choose cryptocurrencies such as USDT to avoid US-led sanctions. After all, this country is already highly reliant upon the crypto ecosystem for cross-border transactions and due to the fact that they’ve already been cut off from many international financial institutions.

Some issues still need to be highlighted. For example, independent entities can have an influence upon transactions. This was clearly illustrated in a move by Tether. Tether signalled that it would lock out any crypto wallets that are suspecting of using USDT to avoid United States sanctions.

This is not an empty threat, as 41 crypto wallets linked to the Venezuelan oil and gas sector have already been frozen. In other words, averting the impact of sanctions might not be as simple as it appears.

What Could This Signal for the Larger Cryptocurrency Community?

The observations outlined above are yet another example of how cryptocurrencies have begun to enjoy a firm presence within the real world. They’re no longer limited to a niche marketplace and only a handful of savvy investors.

Most analysts agree that cryptocurrencies will continue to grow in terms of both functionality and public recognition. Although we’re not certain how Venezuela will be affected in the event that all Tether transactions related to the oil and gas sector are halted, there’s little doubt that other countries are eyeing the DeFi ecosystem as an alternative to standard fiat transfers.

by Our Certified Author
Tether Newsflash
    Bet with USDT on BNB and big bonuses on Betunlim Casino!Bet with USDT on BNB and big bonuses on Betunlim Casino!
    Tuesday, 30 Apr 2024 8:50 am
    Say hello to a crypto casino site from summer of 2022 that's still going strong with some of the best feedback around on one of the world's leading customer satisfaction sites. Put simply, the general public love it. Which site do we refer to? That can only be Betunlim Casino (review) of course! With a 5 stage welcome bonus spread between deposits 1 through 10 that totals 3000 USDT plus a lovely 300 free spins, you get off to a good start and are rewarded for coming back time and again. So, does that get you hot under the collar? Sign up now and give it a spin...
    Read the full newsflash

    Grab your 3000 USDT welcome at Bet Original this TuesdayGrab your 3000 USDT welcome at Bet Original this Tuesday
    Tuesday, 9 Apr 2024 8:19 am
    It's new casino Tuesday and that means only one thing: you guessed it. Crypto Lists is out with a fresh review, only this time our casino of choice came out of the oven in 2021 and has had a couple of years to establish its name as a cool and exciting place to play. The thing we really like about Bet Original (review) is the game variety coupled with a three-tier welcome bonus that totals 3000 USDT (or any other crypto equivalent). Not bad, right. Why not sign up now and check it out...
    Read the full newsflash

    A plush 1200 USDT welcome bonus awaits on Woop WinA plush 1200 USDT welcome bonus awaits on Woop Win
    Thursday, 28 Mar 2024 1:10 pm
    How does a casino with a classic look and feel sound to you? The feel of the Las Vegas strip streaming straight to your laptop or phone. Woop Win (review) delivers exactly that and more, with a three-stage welcome bonus of 1200 USDT there to whet your appetite some more. But that's not all. No sir, you've also got the lightning-speed and innovation of crypto currencies to content with - making you feel like you're on the cutting edge yet still playing with the Bonds of the world at the croupier's table. Sign up now and experience the luxury...
    Read the full newsflash

    24 hour exclusive 200 USDT offer on Bitubet24 hour exclusive 200 USDT offer on Bitubet
    Friday, 1 Mar 2024 7:54 am
    Our friends over at Bitubet (review) have a lovely exclusive offer for just 24 hours. Want to hear it and kick off your weekend in style? We're not surprised one bit! For the next 24 hours, deposit 50 USDT or more into your Bitubet account and receive a fantastic 50% matching bonus of up to 200 USDT! Simply sign up and opt in within the designated time frame. Don't miss out on this limited-time opportunity to boost your playing power and explore all the amazing games...
    Read the full newsflash

    Feel that va va voom on Vavada with a 1000 USDT welcomeFeel that va va voom on Vavada with a 1000 USDT welcome
    Tuesday, 20 Feb 2024 9:14 am
    With a beautifully designed site and games coming thick and fast from 40+ providers, boredom is likely never on the cards when it comes to Vavada Casino (review), a 2017 powerhouse site that we simply couldn't not review for you all. It's got a great range of games to try - obvious really, given the number of developers - alongside a small suite of promos and a large collection of tournaments. If that sounds up your street then it likely is, so why not sign up today and see if our review matches your real-life experience...
    Read the full newsflash

New Casino Reviews
New Crypto Casinos
Best Crypto Casinos
Recent Crypto Sites
Recent Crypto Coins
Keep up to date with

Our Newsletter

Sign up to our newsletter to get the
latest crypto news, new casinos,
bonus offers and other exciting
* indicates required
Copyright © 2019-2022, by Crypto Lists Ltd (CryptoLists.com). Company name: Crypto Lists Limited. Address: 5 Upper Montagu Street, LONDON W1H 2AG, England.
Jump to top