Some Venezuelan businessmen switch to USDT for settlements to circumvent sanctions

In Venezuela, some companies are using USDT for settlements with foreign clients and suppliers who are wary of using traditional payment methods due to sanctions risk. Local media report this.

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According to Juan Blanco, director of the BitData consulting firm, many Venezuelan companies settle in USDT on commercial exchanges, with part of this cash flow coming from Russian and Asian firms.

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\”Expensive goods produced in Venezuela are sold for USDT. Payment for what is exported is processed through a free and independent mechanism provided by the blockchain,\” Blanco said.

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Luis Gonzalez, manager of Cashea’s local financial center, added that sanctions affect all small and medium-sized enterprises in Venezuela without exception.

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\”Access to international transfers, currencies, payment instruments and suppliers is restricted. Obviously, most payments are made abroad and in foreign currency. The only alternative we had was to use USDT,\” he explained.

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Settlements with foreign clients using stablecoins appeared relatively recently in Venezuela. Typically, dollar-pegged digital assets in such countries are used to hedge against inflation and devaluation, Chainalysis noted.

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As reported in June 2022, Venezuela’s National Administration for Crypto Assets and Related Activities said it planned to strengthen control over transactions involving digital currencies.

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Read ForkLog’s special report on life in a country that has been under international economic isolation since 2005.