Venezuela: 80% of oil revenues pass through USDT despite sanctions

With the rise of stablecoins, Venezuela now channels most of its oil revenues through USDT, marking a turning point in the management of its energy revenues. According to local analysts, nearly 80% of revenues from oil exports are today processed using this dollar-indexed token. This development illustrates the transition of digital currencies, formerly limited to individual uses, to a central role within the country's energy sector. Economist Asdrúbal Oliveros recently discussed these transformations during a podcast dedicated to the adoption of digital assets in the Venezuelan oil industry.

USDT supports oil operations despite sanctions

Despite U.S. sanctions, USDT and other digital assets play an increasingly important role in keeping Venezuela's oil sector operational. According to Asdrúbal Oliveros, the country's oil production, which is now around 1 million barrels per day, has benefited from the adoption of cryptocurrencies. With almost 80% of oil revenues collected in the form of stablecoinsthese digital currencies have established themselves as a key tool for managing national energy revenues.

Despite their usefulness, structural constraints persist. Venezuela continues to face restrictions on converting stablecoins into cash, due to government rules limiting their use. Analysts warn that these limitations can cause tensions in the foreign exchange market, stimulating demand and pushing up prices, calling for increased monitoring.

Transition to USDT payments

Venezuela began accepting oil payments in USDT in 2024, to circumvent sanctions imposed in 2019 on state oil company PDVSA under the first Trump administration. Starting in the first quarter of 2024, PDVSA required spot oil transactions to be settled via digital wallets linked to USDT.

To support this, the government has authorized certain licensed banks and exchange offices to provide USDT to private businesses in exchange for bolivars. The received stablecoins are then deposited into state-approved wallets, allowing buyers to efficiently pay their suppliers or conduct private transactions. However, difficulties arose later in the year when 41 USDT wallets were suspended due to alleged ties to entities and individuals on US sanctions lists.

Growing tensions and economic growth

Relations between the United States and Venezuela remain tense, and several recent events illustrate the intensification of political and economic pressures:

• In March 2025, the United States increased pressure on Venezuela's oil sector by imposing a 25% tariff, directly targeting the country's main source of revenue and worsening its economic woes.
• In response, private buyers in Venezuela turned to cryptocurrencies, acquiring approximately $119 million over the next four months in order to circumvent these new restrictions.
• Despite these pressures, oil shipments have demonstrated resilience, reaching their third highest average and demonstrating continued production despite a tense political and financial environment.
• Tensions further increased last week when Donald Trump announced on Truth Social a naval blockade aimed at preventing sanctioned oil tankers from entering or leaving Venezuelan ports. Venezuela called the move a “grotesque threat,” illustrating continued friction between the two countries.

Furthermore, the Venezuelan economy as a whole has continued to grow. Gross domestic product increased from $102.38 billion in 2023 to $119.81 billion in 2024, showing that the country has maintained sustained economic activity despite sanctions. At the same time, the global stablecoin market continues to expand, with a total capitalization of around $310 billion, with USDT dominating the sector with a 60.22% share, according to data from DefiLlama.