Venezuela’s PDVSA Turns to Tether as Hedge Amid Concerns Over Frozen Bank Accounts

Venezuela’s PDVSA Turns to Tether as Hedge Amid Concerns Over Frozen Bank Accounts

Reuters has disclosed that PDVSA, Venezuela’s state-owned oil company, is endeavoring to increase its utilization of USDT as a safeguard against the potential freezing of its foreign bank accounts. Tether, the leading dollar-pegged stablecoin globally, appears to be PDVSA’s instrument of choice in this strategy.

As of the time of press, Tether had not provided a response to CoinDesk’s request for comment on the matter.

PDVSA reportedly employs intermediaries in its crypto transactions to obscure the on-chain footprint, according to Reuters.

Venezuela initiated its inaugural foray into the realm of cryptocurrency back in 2018, aiming to circumvent reliance on the US dollar. However, the initiative failed to gain significant traction, with no major exchanges embracing it. Consequently, the government phased out the program in early 2024.