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In response to renewed U.S. oil sanctions, PDVSA is increasing its utilization of digital currency for oil and fuel transactions. The U.S. Treasury Department recently set a deadline of May 31 for PDVSA’s customers and providers to conclude transactions under a general license that remains unrenewed due to electoral reform issues.

Since last year, PDVSA has gradually shifted its oil sales to USDT, a digital currency tethered to the U.S. dollar, in order to mitigate the risk of revenue freezes amidst sanctions pressure, according to Reuters.

Venezuela’s government has indicated that digital currencies may become the preferred payment method in certain contracts. Moreover, in 2023, PDVSA discovered unaccounted receivables amounting to $21 billion from oil exports, partly attributed to the use of cryptocurrency in trade.

Despite achieving its highest oil production in four years, reaching approximately 900,000 barrels per day last month, Venezuela anticipates continued contract signings and expansion of oil and gas projects during the 45-day wind-down period stipulated by the U.S. government. Following this period, potential clients will be requested to obtain specific licenses for transactions.

However, oil analysts predict that even with the issuance of individual permits by Washington, Venezuela’s oil production, exports, and revenues are likely to face constraints in the near future.