As inflation hits 229%, stablecoins like USDt are overtaking Venezuela’s bolívar for everyday payments, from groceries to salaries.
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Stablecoins like USDt have become the de facto currency for millions of people navigating a crumbling financial system in Venezuela as the country’s annual inflation rate surges to 229%.
Once limited to crypto-savvy users, Tether’s USDt (), often referred to locally as “Binance dollars,” is now widely used across Venezuela for everything from groceries and condo fees to salaries and vendor payments, Mauricio Di Bartolomeo, who fled Venezuela before co-founding Ledn in 2018, told Cointelegraph.
The bolívar, Venezuela’s national currency, is largely dead in daily commerce. Hyperinflation, strict capital controls, and a fractured exchange rate landscape drive a growing preference for stablecoins over cash or local bank transfers.
There are currently three rates for the US dollar in Venezuela. The official Central Bank rate (BCV) is 151.57 bolívars per USD, the parallel market rate is 231.76, and the USDt rate on Binance is 219.62. USDt’s liquidity and reliability make it the most used rate among vendors and consumers.
“People and companies prefer to price their goods and services in USD, and receive payment for the same in USD,” Di Bartolomeo said. He noted that USDt now functions as both a better dollar and a financial equalizer across social classes.
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Venezuela ranks #9 in per capita crypto use
According to , Venezuela ranks #18 globally and #9 when adjusted by population. Stablecoins accounted for 47% of all Venezuelan crypto transactions under $10,000 in 2024, and overall crypto activity rose 110% last year.
Di Bartolomeo said that even routine expenses like condo fees, security services, and gardening are now quoted and paid in stablecoins. From small bodegas to mid-sized businesses, USDt has replaced fiat cash as the settlement method of choice.
Larger state-controlled entities remain tethered to the BCV exchange rate, but most market participants prefer the Binance dollar’s efficiency and accessibility.
Venezuela’s government-imposed capital controls have also led to parallel markets for foreign currency and digital assets. Official USD allocations are reportedly handed to regime-connected firms, who resell dollars at parallel rates for profit.
“Capital controls also create a parallel market for cash and stablecoins, as economic actors refuse to accept the worthless local currency for payment,” Di Bartolomeo said. “If and when they reluctantly accept it, they rush to trade it into stablecoins or USD.”
Related:
Crypto rises where fiat fails
In countries facing monetary instability and capital controls, crypto adoption is accelerating as people look for alternatives to failing currencies. Venezuela, , and Nigeria , with locals turning to stablecoins amid soaring inflation.
Di Bartolomeo said that after the US enacted its latest batch of sanctions on Venezuela, including its oil sector, some local banks also turned to stablecoins.
“Oil companies and other industries are also increasingly pivoting to them,” he said. “Reportedly, a limited number of local banks have started selling USDt to some businesses in exchange for bolivars to avoid restrictions.”
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