The people of Venezuela has officially abandoned their local currency, replacing it with Tether's USDt. This comes as Venezuela's economic crisis reached a new tipping point, as the country's annual inflation surges to 229%.
Stablecoins like Tether’s USDt—dubbed “Binance dollars” by locals—have become the payment method of choice for millions facing a fractured financial system and plummeting local currency value.
Once confined to tech-savvy circles, USDt is now ubiquitous across Venezuela, used for everything from groceries and condo fees to salaries and vendor settlements. Ledn co-founder Mauricio Di Bartolomeo, notes that USDt now functions as both a better dollar and a financial equalizer across social classes.
"People and companies prefer to price goods and services in USD, and receive payments in USDt"
As official capital controls, hyperinflation, and multiple exchange rates squeeze the bolívar out of use, USDt’s liquidity and reliability have prompted widespread adoption—from small bodegas to local banks and oil companies.
Vendors and consumers now reference three rates for the US dollar: the official rate (BCV) at 151.57 bolívars, a parallel market rate at 231.76, and an active Binance USDT rate at 219.62. Despite the government enforcing the lowest rate for state-linked entities, most of the country prices deals at the stablecoin-powered Binance rate.
According to the Chainalysis 2025 Global Crypto Adoption Index, Venezuela ranks 18th globally—and 9th by population—for cryptocurrency use. Last year, stablecoins drove 47% of all Venezuelan crypto transactions under $10,000, while overall crypto activity doubled.
Condo fees, security services, and even gardening contracts are routinely settled in stablecoins, highlighting how deeply digital dollars have penetrated daily life.
Capital controls and chronic instability have fostered parallel markets for cash and digital assets. Official USD reserves flow to politically connected firms, who resell them at a premium—while ordinary citizens rush to swap any received bolívars for stablecoins or US cash, seeking refuge from further devaluation.
Venezuela’s rapid shift to digital dollars is mirrored in other hyperinflationary economies such as Argentina, Turkey, and Nigeria, where stablecoins offer critical financial access and stability amid runaway inflation and currency controls.
As Di Bartolomeo also noted that in light of the US sanctions on Venezuela, many state-linked industries are also increasingly transacting into USDt.
"Oil companies and other industries are also increasingly pivoting to them. Reportedly, a limited number of local banks have started selling USDt to some businesses in exchange for bolivars to avoid restrictions."
While stablecoins are not officially sanctioned in Venezuela, their pervasive usage highlights how digital assets are stepping in where national currency and legacy payment rails have failed.
The bolívar, for many, is now a relic; for Venezuela’s resilient population and business community, stable digital dollars have filled the void.
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