Stablecoins such as Tether’s USDt are quickly becoming the go-to currency for millions of Venezuelans, as the country’s economy continues to deteriorate under runaway inflation — now climbing to an annual rate of 229%.
What was once a niche tool for crypto enthusiasts has evolved into a nationwide lifeline. Known locally as “Binance dollars,” USDt is now used for everyday expenses including food, utilities, salaries, and payments to suppliers, according to Mauricio Di Bartolomeo, a Venezuelan native who co-founded crypto lending platform Ledn after leaving the country in 2018.
The national currency, the bolívar, has essentially vanished from daily commerce. Hyperinflation, rigid currency controls, and an unstable exchange system have pushed both individuals and businesses toward stablecoins.
At present, Venezuela has three different exchange rates for the U.S. dollar: the official Central Bank rate (151.57 bolívars per USD), the black-market rate (231.76), and Binance’s USDt rate (219.62). Thanks to its liquidity and stability, the Binance rate is favored by most merchants and consumers.
“Goods and services are usually priced in U.S. dollars, with payments often settled in USDt,” Di Bartolomeo explained, adding that the stablecoin has become both a reliable store of value and a financial equalizer across different social groups.
Crypto Adoption on the Rise
Venezuela holds the #18 spot globally — and #9 on a per-capita basis — in the 2025 Chainalysis Global Crypto Adoption Index. Stablecoins represented 47% of all transactions under $10,000 in 2024, and overall crypto activity surged 110% compared to the previous year.
Routine expenses such as building maintenance, security services, and even gardening fees are now being billed and paid in USDt. From small corner shops to medium-sized companies, stablecoins have replaced cash as the preferred settlement method.
While state-linked corporations remain tied to the Central Bank’s official rate, most economic players rely on Binance’s more practical and widely accepted rate.
Government capital controls have fueled these parallel markets, with regime-affiliated companies reportedly receiving official dollar allocations — which are then resold for profit at black-market rates.
“Capital restrictions have created a parallel market for both cash and stablecoins, as very few want to accept bolívars,” said Di Bartolomeo. “And those who do quickly convert them into USDt or U.S. dollars.”
When Fiat Collapses, Crypto Fills the Gap
This trend is not unique to Venezuela. In other economies plagued by inflation and restrictions, including Argentina, Turkey, and Nigeria, stablecoin adoption is rapidly accelerating as citizens search for more stable alternatives to local currencies.
Following recent U.S. sanctions targeting Venezuela’s oil industry, some local banks have also started experimenting with stablecoins.
“Energy companies and other sectors are turning toward stablecoins as well,” Di Bartolomeo noted. “It’s even been reported that certain banks now sell USDt directly to businesses in exchange for bolívars, bypassing restrictions.”
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