- Venezuela’s PDVSA now settles most oil exports in USDT, bypassing dollar banks blocked by U.S. sanctions.
- Stablecoins account for an estimated 80% of Venezuela’s oil revenue, reshaping state cash flow under sanctions.
- USDT is also widely used by Venezuelans for savings, remittances, and payments amid currency collapse.
Venezuela has turned to Tether’s USDT to keep oil revenue moving under U.S. sanctions. The shift began in 2020 and continues today. According to multiple reports, state oil firm Petróleos de Venezuela, or PDVSA, now settles most crude transactions using USDT instead of dollars through banks blocked by sanctions.
Oil Payments Change From Banks to Stablecoins
According to the Wall Street Journal, PDVSA started accepting USDT after losing access to dollar clearing systems. Buyers send payments directly to wallet addresses or through intermediaries that convert proceeds into Tether. Notably, this structure avoids correspondent banks and reduces exposure to frozen accounts.
Local economist Asdrúbal Oliveros said on a podcast that stablecoins now account for nearly 80% of Venezuela’s oil revenue. This estimate highlights how digital dollars have reshaped state cash flow. However, U.S. sanctions continue to target related activity.
Tether has stated it cooperates with U.S. authorities and freezes sanctioned wallets when required. Since then, several wallets linked to Venezuelan oil trade have been blocked. Nevertheless, USDT remains embedded in export settlements due to limited alternatives.
Maduro Case Brings Fresh Scrutiny
Scrutiny increased after Nicolás Maduro was arrested and detained in Brooklyn, according to reports. Maduro pleaded not guilty to narcotrafficking charges in U.S. federal court. The case renewed attention on financial channels linked to the Venezuelan state.
Adam Zarazinski, CEO of Inca Digital, said stablecoin use will likely persist despite enforcement actions. He noted that inflation and weak institutions sustain demand. However, he also warned these conditions allow sanctions evasion.
Ari Redbord, global policy head at TRM Labs, described stablecoins as dual-use tools. He said they function as civilian lifelines while also enabling restricted financial flows.
USDT’s Role Beyond the Oil Trade
Beyond exports, USDT plays a daily role inside Venezuela’s economy. Citizens use stablecoins for purchases, remittances, and savings. Researchers link adoption to capital controls and distrust in domestic banks.
Tether CEO Paolo Ardoino cited Venezuela’s currency collapse as a key driver. He said the bolivar lost 99.8% of its value against the dollar over ten years. Earlier efforts, including the oil-backed Petro token launched in 2018, failed due to low trust.
