Venezuela plans to continue using cryptocurrencies to bypass recent sanctions imposed by the United States in May 2024. Andrew Fireman, Head of National Security at Chainalysis, confirmed that cryptocurrencies, such as bitcoin, have served this purpose previously, employing a “broad array of methods over many years,” not limited to Venezuela alone.
The Biden administration intensified sanctions because it believes Maduro failed to uphold agreements with the US government and cannot ensure fair presidential elections scheduled for July 28.
A recent scandal erupted in Venezuela over corruption in the sale of oil for cryptocurrencies. However, this has not altered the country’s view of cryptocurrencies as a tool to address national challenges.
Chainalysis specialists identified crypto transactions linked to corruption totaling over $70 million. Consequently, the state oil company decided to shift a significant portion of payments to USDT, requiring that more than half of the value of each oil shipment be paid using the popular dollar-pegged stablecoin.
