With a yearly inflation rate of 229% and a financial system in disarray, stablecoins like USDT have become the go-to money for millions of Venezuelans.
According to Mauricio Di Bartolomeo, who left Venezuela before co-founding Ledn in 2018, Tether’s USDT, more often known as “Binance dollars,” is now used for everything from groceries and condo fees to wages and vendor payments. It was formerly only utilized by crypto-savvy users.
Crypto to the Rescue
In everyday transactions, the bolívar, the official currency of Venezuela, is almost nonexistent. Stablecoins are becoming more popular as an alternative to cash and local bank transfers due to hyperinflation, tight capital constraints, and a fragmented exchange rate environment.
The value of one US dollar in Venezuela is now quoted at three different rates. There are many exchange rates for USDT on Binance. The official Central Bank rate (BCV) is at 151.57 bolívars per USD. The parallel market rate is 231.76, and something else entirely. The most popular rate among suppliers and customers is USDT because of its dependability and liquidity.
Chainalysis’ 2025 Global Crypto Adoption Index places Venezuela at spot 9 when adjusted for population and spot 18 overall. In 2024, total crypto activity increased by 110%, with stablecoins making up 47% of all transactions under $10,000 in Venezuela.
Although the majority of market players choose the Binance dollar because to its accessibility and efficiency, larger state-controlled enterprises are nonetheless bound to the BCV exchange rate.
There are now underground marketplaces for digital assets and foreign cash in Venezuela due to the government’s financial restrictions. Reportedly, regime-connected businesses get official USD allocations and resale them at parallel prices for profit. Crypto adoption is booming in nations dealing with capital restrictions and monetary instability. People are seeking alternatives to failing currencies.
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Source: https://thenewscrypto.com/venezuelans-turn-to-stablecoins-as-hyperinflation-erodes-bolivar/