Venezuela uses cryptocurrency to circumvent new US sanctions

Date: 2024-06-20 Author: Gabriel Deangelo Categories: IN WORLD
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Venezuela will continue to use cryptocurrency to circumvent new sanctions imposed by the United States in May 2024. This practice is no longer new to the country, and the authorities see digital currencies as an effective tool for solving national problems in the face of economic restrictions.

Chainalysis' head of national security, Andrew Fierman, confirmed that cryptocurrency has been used for similar purposes before, in combination with "a wide range of methods over the years," and not just in Venezuela.

Increased sanctions and political situation

The sanctions have intensified due to the Biden administration's dissatisfaction with the implementation of agreements reached with the US government. The White House believes that Venezuelan President Nicolas Maduro will not be able to guarantee fair presidential elections scheduled for July 28.

Recently, a scandal erupted in Venezuela involving corruption in the sale of oil for cryptocurrencies. Chainalysis specialists identified crypto transactions of corrupt officials worth more than $70 million. Despite this, the attitude towards cryptocurrency as a tool for solving the country’s economic problems has not changed.

Switch to USDT

Learning from the scandal, Venezuela's state oil company has decided to convert most of its payments to USDT. Now, more than half the cost of each oil shipment must be paid for with this popular stablecoin pegged to the US dollar.

Using cryptocurrency to evade sanctions has become an important part of Venezuela's strategy amid economic restrictions. Despite corruption scandals, the country continues to develop this practice, seeing in it an opportunity to stabilize the economy and circumvent international sanctions.
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