tldr; Venezuela collects 80% of its crude oil sales revenue in Tether’s USDT, as revealed by economist Asdrubal Oliveros. The country uses stablecoins to sustain its oil economy amidst U.S. sanctions, which have been in place since 2019. Oil production has risen to 1 million barrels per day, with most revenue coming from China. However, Venezuela faces challenges in liquidating its stablecoin holdings due to regulatory controls. Despite sanctions, the country's GDP grew from $102.38 billion in 2023 to $119.81 billion in 2024.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
That means that China gives them USDT for the purchase of crude, and then Venezuela simply uses it as a mechanism for exchange control and internal distribution, feeding a domestic market where USDT is widely accepted as a store of value and a means of payment?
Using USDT to dodge sanctions is pretty clever but the liquidity issue is going to bite them eventually. Can't exactly offload billions in stablecoins without raising red flags. The GDP bump is real though, so something's working for now.
You mean for maduro to sell the country’s natural resources, avoid sanctions, and pocket the money while his people starve or, at a minimum, live in poverty?
It's not Maduro Oil, it's a state oil company. Before it was Shell, and was no paradise and was not less starving, au contraire, the socialist revolution was more about end exploitation from imperialists.
What U.S. is doing is more like terrorism killing more than 100 ppl whitout any proof of its claims, in international territory and in fact robbing other nations natural resources. What does U.S. has to do with Venezuela or Latin America at all? Go home to your beautiful country then. 😅
tldr; Venezuela collects 80% of its crude oil sales revenue in Tether’s USDT, as revealed by economist Asdrubal Oliveros. The country uses stablecoins to sustain its oil economy amidst U.S. sanctions, which have been in place since 2019. Oil production has risen to 1 million barrels per day, with most revenue coming from China. However, Venezuela faces challenges in liquidating its stablecoin holdings due to regulatory controls. Despite sanctions, the country's GDP grew from $102.38 billion in 2023 to $119.81 billion in 2024.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
That means that China gives them USDT for the purchase of crude, and then Venezuela simply uses it as a mechanism for exchange control and internal distribution, feeding a domestic market where USDT is widely accepted as a store of value and a means of payment?
If USDT is "a store of value" than so are USD.
They are compared to other currencied. 1usd=1usd
Rick Sanchez will set the right side of that equation to 0.
https://www.youtube.com/watch?v=noQsHiTJAXo
Why wouldn't it be?
Probably not.
Using USDT to dodge sanctions is pretty clever but the liquidity issue is going to bite them eventually. Can't exactly offload billions in stablecoins without raising red flags. The GDP bump is real though, so something's working for now.
USDT can be frozen though
great point
That's why they should use BTC or something like DAI to have stable value.
DAI is backed by - get this - USDC and USDT (mostly)
Correct, but a freeze on USDT/C can't target the DAI holder without hurting every DAI user.
Dai has never accepted usdt as collateral. Fair bit of usdc, but most of those holdings have been converted to yield earning assets like tbills.
Did I hear OIL? 🦅🦅🦅🦅🇺🇸🇺🇸🇺🇸
they are already on the way
Yeah OP must have been asleep.
Trump isn't even trying to hide that he wants those sweet resources
For how much longer?
Trump: "Drug money. We need to confiscate it immediately to stop the narco-terrorists"
Bullshit.
Is this for real?
In the last year, USDT lost over 15% of its value relative to EURC and more than 40% relative to XAUT/PAXG.
This just in: stablecoin pegged to USD loses value against stablecoin pegged to EURO when USD loses value against EURO.
My pants also lost value relative to my gold bar!
So they weren’t lying when they said cryptos best use case was to facilitate illicit trade
Why is it illicit for a country to trade his own natural resources? Please illuminate us, ser.
You mean for maduro to sell the country’s natural resources, avoid sanctions, and pocket the money while his people starve or, at a minimum, live in poverty?
It's not Maduro Oil, it's a state oil company. Before it was Shell, and was no paradise and was not less starving, au contraire, the socialist revolution was more about end exploitation from imperialists.
What U.S. is doing is more like terrorism killing more than 100 ppl whitout any proof of its claims, in international territory and in fact robbing other nations natural resources. What does U.S. has to do with Venezuela or Latin America at all? Go home to your beautiful country then. 😅
Are you suggesting Venezuela’s oil reserves aren’t by and large state owned? Who heads the state? Who checks that individual’s power?
If you think Maduro isn’t raping Venezuela and its people, with the aid of the oil money, then let me sell you a bridge.
He doesn't think. He just listens to what his social media feed tells him.
It's illicit to trade in USD. They're welcome to sell in some other currency in a different market.
They should just use BTC. Sure there’s volatility but it’s also bound to increase in value at some point.