Overview
- U.S. authorities worked with Tether to block wallets tied to sanctioned oil transactions, and the company said it complies with international sanctions and law enforcement requests.
- Economists and recent reporting estimate that a large share of Venezuela’s oil cash flow—reported as high as roughly 80%—has been routed through USDT, often on the Tron network.
- Since 2020, PDVSA and oil buyers have settled deals outside traditional banks by moving funds through stablecoin addresses or intermediaries.
- USDT has become a household tool in Venezuela for remittances, savings, rent, groceries, and services as the bolívar lost purchasing power and bank access narrowed.
- Analysts highlight a core tension in which stablecoins function as a lifeline for citizens yet remain subject to issuer controls, and they note that reliance is unlikely to fade while sanctions and banking limits persist.