Venezuela Just Opened the Crypto Floodgates—And It Could Change How Sanctioned Nations Do Business Forever

Group 1 - The Venezuelan government is leveraging cryptocurrency, particularly dollar-pegged digital currencies, to navigate economic sanctions and maintain its economy [1][2] - The use of Tether (USDT) has surged since June, allowing businesses to exchange currency in a context where traditional dollar access is severely restricted [2][3] - The shift towards digital currencies is a response to the crippling effects of U.S. sanctions, which have limited access to foreign currency and forced businesses to adapt or face collapse [3][4] Group 2 - The U.S. Treasury's recent actions, including a restricted license for Chevron, have exacerbated the dollar shortage in Venezuela, prompting officials to explore cryptocurrency solutions [4][5] - State-run oil company PDVSA has increased its use of digital currencies, particularly USDT, as traditional payment methods have become unreliable [6][7] - Venezuela's crypto system involves a limited number of banks selling USDT to government-approved businesses, which can then use the cryptocurrency for transactions or sell it on secondary markets [7]