Some companies in Venezuela are using the stablecoin peg as a way to circumvent sanctions and settle payments with foreign customers and suppliers. Local reports indicate that while the most popular use case for the stablecoin involves its purchase for devaluation protection purposes, a handful of companies are taking advantage of it in this way as well.
Companies are reportedly using USDT to avoid being harmed by the sanctions in Venezuela
While the use of dollar-pegged stablecoins such as Tether USDT, in countries like Venezuela it is mainly related to inflation and devaluation according to Chainalysis, a second use case has also recently been discovered. Local analyst reports indicate that a handful of companies are using USDT as a payment method for foreign customers and suppliers, who fear using traditional payment methods due to the risk of receiving sanctions.
According to Juan Blanco, director of the local consultancy Bitdata consultores, many unidentified companies are settling commercial exchanges using USDT, with part of this cash flow coming from companies located in Asia and Russia. White fixed:
There are things that are being produced in Venezuela with a lot of value that are traded in USDT. The little that is exported, due to the issue of the blockade, leaves the country through the free and independent mechanism provided by the blockchain to pay for goods and services.
Luis González, manager of Cashea, a local financing hub, affirmed that the sanctions do affect Venezuelan SMEs, even when they are not included in their scope. Gonzalez explained:
With the sanctions they restrict us, who have nothing to do with political issues. Access to international transfers, currencies, means of payment and providers is limited. Obviously, most payments are made abroad and in foreign currency. The only alternative we have had is to use USDT.
Crypto for Oil
He reports The possible implementation of cryptocurrencies to circumvent sanctions in Venezuela date back to 2019, when the country’s central bank was studying using ether and bitcoin to pay suppliers of PDVSA, the state oil company, according to Bloomberg.
Most recently, in October, the Department of Justice accused five Russian citizens and two oil brokers who were using USDT as part of a plan to buy equipment for the Russian military and sell Venezuelan oil. The indictment alleges that at least one sale of 500 billion barrels of crude could have been settled using USDT.
What do you think about the use that Venezuelan companies have given to shaving? USDT? Tell us in the comment section below.
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