Rich by Coin

Venezuela’s case shows a new paradigm in which cryptocurrency is used as a means to evade sanctions on the national economy. The country is reportedly receiving around 80% of crude sale proceeds in USDT, strengthening a crypto-based economy. Oliveros explained that digital assets like USDT contribute to maintaining Venezuela’s oil economy even amid U.S. sanctions, with oil production rising to around one million barrels per day. He emphasized that cryptocurrency is directly connected to the oil sector, and nearly 80% of oil revenues are being collected in stablecoins.

The Caracas government is actively leveraging stablecoins in oil trades, but converting them into cash remains challenging. Venezuela began receiving oil payments in USDT starting in 2024. PDVSA required digital wallets and USDT payments for crude spot sales through March 2024, and Caracas allowed private firms to access USDT via designated banks and exchange offices to purchase Bolivar. Banks or exchanges must first deposit the stablecoins into a government-approved wallet, after which buyers can pay suppliers or sell them privately.

Venezuela’s case illustrates how cryptocurrency can be leveraged to mitigate sanctions, with around 80% of crude sale proceeds reportedly received in USDT, reinforcing a crypto-based economy tied to oil revenues. Analysts suggest digital assets help sustain the oil sector amid financial restrictions, and crude production has been described as approaching one million barrels per day. Oil trades are increasingly conducted in stablecoins, while converting these assets to cash remains a challenge for the economy. Since 2024, Venezuela began receiving oil payments in USDT, and PDVSA has required digital wallets for crude trades; Caracas also allowed private firms to access USDT through designated banks and exchanges.

However, regulatory actions impact these flows. OFAC froze 41 USDT wallets linked to Venezuelan entities, illustrating ongoing enforcement complexity. In March, the United States imposed a 25% tariff on Venezuelan oil buyers, and four months later roughly $119 million worth of cryptocurrency had been sold to private Venezuelan buyers, underscoring a growing yet contested crypto-based economy.