PDVSA has introduced a new contract requiring 50% advance payment in Tether USDT for all spot oil transactions by Q1 2024.
According to the most recent source, in response to the intensifying U.S. sanctions on Venezuela, the nation’s state-run oil giant, PDVSA, has increased its efforts to employ stablecoins and digital currencies, such as Tether (USDT), for its gasoline and crude exports.
PDVSA mulls use of Tether (USDT)
Last week, the US Treasury Department requested that suppliers and clients of PDVSA conclude transactions by May 31. This move is likely to make it harder for businesses to increase their oil output and exports from Venezuela, as they will need to wait for specific authorizations from the US.
To avoid the possibility of sale earnings being confiscated from overseas bank accounts due to penalties, PDVSA has been gradually switching its oil sales to Tether’s USD-pegged stablecoin, USDT, since last year. The value of USDT is linked to the US dollar, which provides stability. Sources familiar with the situation suggest that the reintroduction of oil sanctions is accelerating this shift.
According to Pedro Tellechea, Venezuela’s oil minister, Reuters this week, digital currencies are being considered as the preferable mode of payment for some oil contracts. He remarked, “According to what is stated in contracts, we have different currencies.”
In the global oil industry, the US dollar continues to be the predominant currency for transactions. While cryptocurrency payments are becoming more popular in some regions, they are still relatively uncommon overall.
When almost $21 billion in mysterious receivables from oil shipments in prior years were discovered, partially connected to previous transactions utilizing several cryptocurrencies, PDVSA was faced with a corruption crisis last year.
Tellechea became the head of the country’s oil ministry after the incident. Venezuela has experienced an increase in oil exports under Tellechea’s direction. Exports surged to about 900,000 barrels per day in March, the highest level in four years, helped by U.S. permits allowing sales.
PDVSA demands 50% payment in USDT
By the end of the first quarter of 2024, PDVSA had moved many spot oil transactions—swabs excluded—to a contractual structure that required half of the value of each shipment to be paid in USDT up ahead.
Furthermore, each new client wishing to transact in oil is required by PDVSA to have bitcoin stored in a digital wallet. Reportedly, Venezuela has upheld this duty, even with respect to some current agreements that do not specifically call for the use of USDT.
One trader stated, “The only way to make it work is working with an intermediary. USDT transactions, as PDVSA is demanding them to be, don’t pass any trader’s compliance department.”
Although they will remain, GameFi airdrops cannot redeem a subpar game: Execs
Despite receiving a negative press during the last cycle, GameFi executives believe that blockchain gaming tokenomics is here to stay since it’s a crucial strategy for expanding the user base.
Industry insiders predict that gaming companies will continue to employ airdrops and other incentives to draw players, despite persistent opposition from certain players on “tokenomics.”
In an interview, Kieran Warwick, the creator of the game company Illuvium, stated that it’s a pretty simple approach to gain market share.
But according to Warwick, games that fall short in terms of gameplay or enjoyment are still destined to fail.
“The problem with that is if you’re using it as a marketing tool and you don’t have a good product to back it up, then your retention is abysmal.”
Shi Khai Wei, founder of venture capital firm LongHash Ventures, also stressed the importance of making the games fun.
“Crypto is very good at acquiring users because of incentives — we have airdrops, play-to-earn mechanics and speculative elements, but to keep the players there, you need to have fun gameplay.”
One of the greatest blockchain gaming success stories to date is Axie Infinity. But among other things, a $650 million bridge hack made it difficult for the company that created it, Sky Mavis, to hold onto users following the last weak market.
“The games that understand sustainable economics, appropriate emission schedules, draw in the right players, and provide incentives for appropriate gameplay are the ones that will endure,” stated Wei.
Hackers leak El Salvador’s Chivo Bitcoin wallet code
El Salvador’s state-controlled Bitcoin wallet has encountered a second data breach incident, with hackers releasing another set of sensitive information. On April 23, anonymous bad actors identified as CiberInteligenciaSV leaked Chivo’s source code and VPN credentials for state-operated Bitcoin (BTC) ATMs in El Salvador. This information was made public on BreachForums, a platform frequented by criminals and malicious hackers.
“This time I bring you the code that is inside the Bitcoin Chivo Wallet ATMs in El Salvador. Remember that it is a government wallet, and as you know, we do not sell, we publish everything for free for you.” – CiberInteligenciaSV on BreachForums
Digital security startup VenariX issued a warning to citizens and the wider crypto community about an impending Chivo leak on X, a day prior to the incident. The local initiative revealed that CiberInteligenciaSV had hinted at the upcoming BreachForums post on its Telegram Channel. Additionally, the cybercriminal organization appeared to have extended an invitation to government officials for negotiation.
El Salvador Chivo debacle
Chivo serves as the official Bitcoin storage solution provided by the government of El Salvador, established after President Nayib Bukele’s groundbreaking adoption of Bitcoin as legal tender in September 2021, making El Salvador the first country to do so globally.
Through Chivo, Salvadorans can engage in Bitcoin transactions, including buying, selling, and withdrawing cryptocurrency from BTC ATMs across the nation. However, since its launch, users have encountered various issues with the wallet, including slow execution, app crashes, and other technical glitches.
To address these concerns, the government collaborated with U.S.-based white-label software firm AlphaPoint, as reported by crypto.news in 2022.
The situation intensified earlier this month following a data breach exposing the personal information of approximately five million Salvadorans. The 144GB leak, obtained from a former national security advisor named Alejandro Muyshondt, was reportedly accessed from a cloud backup by hackers.
Initially mistaken for a vaccination database due to its inclusion of details like full names, dates of birth, individual profile photos, and addresses, experts later identified the leaked files as related to Chivo’s sign-up requirements. However, Bukele’s administration has yet to address or issue a statement regarding the incident.
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