Cryptocurrency has become a lifeline for millions in Venezuela as the country battles hyperinflation and a prolonged economic meltdown.
Once ranked 13th globally in adoption by Chainalysis, the South American nation has seen crypto evolve from a niche investment to a survival tool.
Stablecoins in Daily Life
With the bolívar losing 70% of its value and wages failing to keep pace, citizens are turning to stablecoins like Tether (USDT) for everyday transactions. From corner shops to larger retailers, USDT is being used for groceries, salaries, and savings. Payment platforms such as Binance and Airtm now act as de facto banking systems, bypassing the fragile local financial infrastructure.
Victor Sousa, a local shopper, said his family relies on USDT both for purchases and as a safer store of value compared to paper money. Reports suggest that many Venezuelan employers have shifted to paying workers in stablecoins to ensure wages retain value.
Education and Necessity
The surge in adoption has spilled over into education, with universities offering crypto-related courses. Economist Aarón Olmos explains that for Venezuelans, digital assets are not speculative investments but essential tools to survive amid inflation, low wages, and restricted access to bank accounts.
Government’s Mixed Approach
Authorities have sent contradictory signals on crypto. A government-backed token launched in 2018 collapsed by 2023, and earlier discussions of a national Bitcoin reserve never materialized. With official initiatives faltering, citizens have embraced decentralized assets on their own terms, building an alternative economy that relies on stablecoins.
Venezuela’s experience illustrates how digital currencies, particularly dollar-pegged tokens, can become indispensable in times of financial crisis—turning crypto from an investment class into a basic necessity.
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Source: https://coindoo.com/stablecoins-become-survival-tool-in-venezuelas-economic-collapse/