Latam Insights: Venezuela's USDT Oil Economy, JPMorgan Freezes Latam Stablecoin Startups' Accounts
Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, Venezuela’s oil income relies largely on USDT payments, JPMorgan freezes accounts belonging to Latam-based stablecoin companies, and Argentina’s Milei signed an NDA with Libra’s organizers.
Amidst Sanctions and Tanker Seizures, 80% of the Venezuelan Oil Sales Revenue Is Collected Using USDT
Venezuela has integrated stablecoins and USDT as a pivotal part of its oil strategy, according to local reports.
Asdrubal Oliveros, a local economist, referred to the relevant place that these digital assets play in the current Venezuelan oil economy, given the difficulties it faces because of the unilateral sanctions exerted by the U.S. government.
In a recent podcast, where Oliveros highlighted that oil production grew to over 1 million barrels per day, he detailed the ties that this sector has developed with the cryptocurrency economy.
Oliveros stated:
The most direct link this year to the crypto sector comes from there because ultimately, almost 80% of oil revenue is being collected in cryptocurrencies, in stablecoins.
Read more.
JPMorgan Freezes Accounts From ‘High Risk’ Stablecoin Startups Kontigo and Blindpay
Stablecoin neobanks are once again under scrutiny by traditional banking institutions.
According to The Information, JPMorgan has taken action against some stablecoin startups that have been considered high risk, freezing the accounts that they held with the bank over the last months.
The move involves Blindpay, a startup that focuses its operations in Latam markets, including Argentina, Mexico, Colombia, and Brazil. Kontigo, on the other hand, provides on-ramping, stablecoin remittance, and payment services in Venezuela.
Nonetheless, JPMorgan sources consulted stated that these actions were not tied to the nature of the business run by these firms.
Read more.
Libra Saga: Hayden Davis Signed NDA to Become Argentina’s Blockchain Advisor
A journalistic investigation might have uncovered a deeper link between President Javier Milei and Libra two weeks before its launch.
According to a report published by Clarin, Argentina’s President Javier Milei signed an agreement with Hayden Davis, CEO of Kelsier Ventures, in the weeks leading up to the launch of Libra, a cryptocurrency focused on helping Argentine companies obtain funding.
The agreement, which was redacted in Spanish and does not mention Libra, designates Davis as an “ad-honorem” blockchain and artificial intelligence (AI) advisor for Argentina.
The agreement states that Davies assumes a compromise with Argentina to provide “professional support, aligned with global trends in decentralization and technological modernization, ensuring the highest quality and confidentiality at every stage of the consultation.”
Read more.
FAQ
- What role does USDT play in Venezuela’s oil revenue?
Venezuela relies on USDT for 80% of its oil sales revenue, leveraging stablecoins amid U.S. sanctions. - Which companies has JPMorgan targeted in Latin America?
JPMorgan has frozen accounts of stablecoin startups like Kontigo and Blindpay, deemed as high-risk. - What recent agreement has President Milei of Argentina signed?
Argentina’s President Javier Milei signed an NDA with Hayden Davis, becoming his blockchain advisor ahead of Libra’s launch.