2024

Biden

Bitcoin

April

<div class="finbold">
 <p class="paragraph">In a strategic pivot amid tightening U.S. sanctions, Venezuela’s state-run oil company, Petróleos de Venezuela S.A. (PDVSA), plans to increase cryptocurrency usage in its crude and fuel exports.</p>
 <p class="paragraph">As the U.S. Treasury Department declines to renew critical licenses that facilitated oil trades, PDVSA is accelerating its shift towards digital <a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> to preserve trade continuity and financial stability, as reported by <em>Reuters</em></p>
 <h2 class="wp-block-heading" id="h-context-and-sanctions-overview">Context and sanctions overview</h2>
 <p class="paragraph">The Biden administration has taken a firm stance on Venezuelan oil <a rel="noopener noreferrer nofollow" title="sanctions" href="https://thebittimes.com/tag/sanctions.html">sanctions</a> in light of the government’s failure to comply with agreements designed to ensure fair presidential elections in 2024. Specifically, the expiration of General License 44, which allowed transactions related to Venezuela’s oil and gas sector, marks a significant tightening of <a rel="noopener noreferrer nofollow" title="sanctions" href="https://thebittimes.com/tag/sanctions.html">sanctions</a>.</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Opportunity? Crypto expert reveals massive Bitcoin buy price point <span class="self-center text-xs text-slate-500">44 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Bitcoin miners underwater as production costs surge post-halving <span class="self-center text-xs text-slate-500">1 hour ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Where do billionaires keep their money during market turbulence? <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    China’s debt to hit $20 trillion by 2030 at current pace <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
    <p lang="en" dir="ltr">Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement. Therefore, General License 44—which authorized transactions related to the oil and gas sector with Venezuela—will expire after midnight and not be renewed.</p>— Matthew Miller (@StateDeptSpox) April 17, 2024
   </blockquote>
  </div>
 </figure>
 <p class="paragraph">A new temporary license has been issued, providing a 45-day wind-down period for businesses to adjust to the new regulations.</p>
 <p class="paragraph">Despite the U.S. dollar being the preferred currency for global oil market transactions, PDVSA has progressively transitioned its oil sales to USDT since the last quarter of 2023.&nbsp;</p>
 <p class="paragraph">This digital <a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a>, whose value is pegged to the U.S. dollar, is now required to prepay half of each oil cargo’s value. The company is also requiring all new customers to manage transactions through a digital wallet, a mandate that extends to certain existing contracts as well.</p>
 <p class="paragraph">In a recent statement to <em>Reuters,</em> Venezuelan oil minister Pedro Tellechea added that, in some contracts, digital currencies might be the preferred payment method:</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">We have different currencies, according to what is stated in contracts.&nbsp;</p> <cite>Pedro Tellechea</cite>
 </blockquote>
 <h2 class="wp-block-heading" id="operational-challenges-and-compliance">Operational challenges and compliance</h2>
 <p class="paragraph">The unusual nature of these transactions often fails to meet the compliance requirements of traditional traders, necessitating the use of intermediaries. This reliance on middlemen, while facilitating the continuation of oil exports, could potentially reduce the portion of proceeds that PDVSA ultimately receives.</p>
 <p class="paragraph">The recent U.S. license allowed trading houses and former PDVSA customers to resume business with Venezuela, but most of them have resorted to intermediaries to meet the digital transaction requirements.</p>
 <p class="paragraph">Industry analysts remain skeptical, cautioning that even with approvals from Washington, the overall capacity for Venezuela’s oil output and revenue generation may soon reach its limits</p>
 <p class="paragraph">As PDVSA adapts to an increasingly hostile regulatory environment, its move to cryptocurrencies represents a critical effort to maintain operational viability and secure revenue streams.&nbsp;</p>
 <p class="paragraph">The effectiveness of this strategy, however, will depend heavily on the evolving landscape of international <a rel="noopener noreferrer nofollow" title="sanctions" href="https://thebittimes.com/tag/sanctions.html">sanctions</a> and the company’s ability to manage the complex dynamics of digital <a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> transactions in the global oil market.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/venezuela-to-boost-cryptocurrency-use-amid-u-s-sanctions-tbt86236.html">https://thebittimes.com/venezuela-to-boost-cryptocurrency-use-amid-u-s-sanctions-tbt86236.html</a></p>

Venezuela to boost cryptocurrency use amid U.S. sanctions

Table of Contents

TheBitTimes

Další články publikované 23. 4. 2024

Venezuela Adopts Cryptocurrency for Oil Trade Amid Sanctions

Earn Alliance Airdrop: Earn and Claim you Airdrop now!

Post-halving Bitcoin, Chainlink lead the chatter – What are you missing?

ETC vs. ETF: Understanding the Difference—Where to Invest?

Elon Musk’s X App Sparks DOGE Surge: A $1 Dogecoin Prediction?

Ultimate Guide To Ether.fi Airdrop – Season II ($ETHFI) Airdrop

Join our free newsletter for daily crypto updates!