Venezuela s Oil Revenue and Stablecoins: A Weekly Crypto Update from Latin America

In the latest edition of Latam Insights, key developments in the Latin American crypto landscape are highlighted. Notably, Venezuela s oil income heavily relies on USDT payments, JPMorgan has frozen accounts of Latam-based stablecoin companies, and Argentina s President Milei signed a non-disclosure agreement with Libra s organizers.
Venezuela has integrated stablecoins, particularly USDT, into its oil strategy amidst challenges posed by U.S. sanctions. Local economist Asdrubal Oliveros emphasized the significant role these digital assets play in the Venezuelan oil economy. He stated,
almost 80 of oil revenue is being collected in cryptocurrencies, in stablecoins.
This highlights the deepening ties between the oil sector and the cryptocurrency economy.
In a contrasting move, JPMorgan has targeted stablecoin neobanks by freezing the accounts of Kontigo and Blindpay, which are considered high-risk. Blindpay operates in various Latam markets, while Kontigo offers stablecoin remittance services in Venezuela. However, sources from JPMorgan clarified that these actions were not related to the nature of the businesses run by these firms.
In Argentina, President Javier Milei s recent agreement with Hayden Davis, CEO of Kelsier Ventures, may indicate a closer connection to Libra ahead of its launch. The agreement designates Davis as an ad-honorem blockchain and artificial intelligence advisor for Argentina, committing him to provide
professional support, aligned with global trends in decentralization and technological modernization
while ensuring confidentiality throughout the consultation process.