Stablecoins like USDT have become the de facto currency for millions of people navigating Venezuela’s collapsed financial system as the country’s annual inflation rate surges to 229%.
Once limited to crypto-savvy users, Tether’s USDT (USDT) is often referred to locally as “Binance Dollars” and is now widely used throughout Venezuela, from groceries and condominium fees to payroll and vendor payments.
Venezuela’s national currency, Bolivar, is largely dead in daily commerce. Hyperinflation, strict capital controls, and fractured exchange rate landscapes increase stable preferences over cash or local bank transfers.
There are currently three fees in Venezuelan US dollars. The official Central Bank Fee (BCV) is 151.57 volvlvar per USD$151.57, with a parallel market rate of 231.76 and Binance’s USDT rate of 219.62. The liquidity and reliability of USDT makes it the most used rate between vendors and consumers.
“People and businesses prefer to price the price of goods and services in US dollars and receive payments for the same thing in US dollars,” says Di Bartolomeo. He said USDT now serves as both a better dollar and a financial equalizer across social classes.
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Venezuela ranks #9 for per capita encryption
According to the Chainalysis ‘2025 Global Crypto Adoption Index, Venezuela ranks 18th in the world and #9 when adjusted by population. Stablecoins accounted for 47% of all Venezuelan crypto transactions in 2024 at under $10,000, with an overall crypto activity rising 110% last year.
Venezuela ranked 18th in the world for its adoption of cryptography. Source: Chain Analysis
Di Bartolomeo said that even everyday expenses such as condo fees, security services and gardening are being cited and paid for by Stablecoins. From small bodegas to medium-sized businesses, USDT has replaced Fiat Cash as a way of reconciliation for choice.
While large entities in state-owned enterprises remain connected to the exchange rate of BCVs, most market participants prefer the efficiency and accessibility of the Binance Dollar.
Venezuelan government-imposed capital management has also led to parallel markets of foreign currency and digital assets. The official USD allocation is reportedly passed to regime-connected companies reselling dollars at parallel fees for profit.
“Capital control also creates parallel markets of cash and stable rocks as economic actors refuse to accept valueless local currency for payment,” Dibartolomeo said. “If they reluctantly accept it, they’re in a hurry to trade it for stablecoins or USD.”
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Crypto rises where Fiat fails
In countries facing financial instability and capital management, the adoption of crypto is accelerating as people look for alternatives to currencies. Venezuela, Argentina, Turkey and Nigeria follow a similar pattern, with locals turning to stubcoin amid rising inflation.
Di Bartolomeo said some local banks have also been turned into stubcoins after the US enacted its latest batch of sanctions in Venezuela, including the oil sector.
“Oil companies and other industries are also turning more and more,” he said. “A limited number of local banks reportedly are beginning to sell USDT to some companies in exchange for Bolivar to avoid restrictions.”
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