Reports Claim Venezuela Is Using USDT To Circumvent Sanctions

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For a long time, cryptocurrencies were used by corrupt and foul politicians to carry out money laundering. This is the reason why the reputation of cryptocurrencies has plummeted so much in recent years.

Then come the stablecoins that have also caught the attention of the regulators for being used as a way to circumvent sanctions.

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Venezuela has Adopted USDT

According to the latest reports, Tether (USDT) has become the top choice among politicians and the corrupt to circumvent sanctions.

Chainalysis, a major on-chain data analyzing firm has shared a report revealing that USDT has become the top choice for Venezuela for transactions.

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The country is under great pressure from the western sanctions. Among all the countries, it is the United States that has issued the strictest sanctions against the country.

It has barred several financial entities from interacting with Venezuela and providing their services to the people in the country.

The firm has revealed that the country has found USDT to be the best way to circumvent sanctions.

Venezuela is reportedly using USDT to make payments to international providers and customers. It has been widely adopted as a mode of payment by the companies and government of Venezuela.

Turns out, the government and the local companies are hesitant in using traditional payment methods. Instead, they are going for the stablecoins to hide and conceal their transactional histories and records.

The west has a very keen eye on Venezuela as it always wants to catch the country in the act so it can implement more sanctions.

The country has been using USDT and other cryptocurrencies to make and receive payments from providers based in Russia and Asia.

The source has claimed that Venezuela has a lot of cash flow coming in from two major regions. The first is Russia and the other one is in Asia.

It suggests that the countries that are not on good terms with the US or its allies in Asia are siding with Venezuela. These are the countries supporting Venezuela in starting and finalizing its deals.

Statement by Luis Gonzalez

The manager at a local financing hub, Cashea, Luis Gonzalez made a statement about the activities of the country.

Gonzalez revealed that the country is involved in the production of so many unique things and products. These products are of great value to the country and they hold an even higher value for foreigners.

Therefore, companies from around the world are eager to finalize deals with Venezuela but the country is targeted by the sanctions.

The country feels the need to hide its financial transactions and deals with the outside world from the United States and the European region. This is because these regions are always on the lookout for issuing sanctions against the country.

Due to the strong monitoring from the outside world, the country has resorted to using stablecoins. As of now, Venezuela has found USDT to be the best and most reliable stablecoin.

Situation of Venezuela

For years, Venezuela has been under a great amount of pressure coming in from the United States and its allies.

The countries have continued blaming the country’s politics and the human rights violations, for which they have started to implement sanctions.

The country started to feel the pressure of the sanctions years before Iran and Russia were brought into the same circle.

It took a lot of time for Venezuela to deal with the situation and it has found Bitcoin to be the best option to recover from the difficult times.

It was in 2019 when Venezuela doubled down on its efforts to mine cryptocurrencies, especially going after Bitcoin. Not only the government but the Venezuelan military is also involved in mining activities.

The country is using USDT tokes as well as Bitcoin to make international payments and deal with the sanctions.

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