Venezuelans Turn to Stablecoins as Inflation Soars and Bolívar Plummets
From small corner stores to major retailers, Venezuelans are increasingly using stablecoins like USDT to cope with skyrocketing inflation and the collapse of their national currency, the bolívar.
As the economic crisis deepens, cryptocurrencies are becoming a key part of daily life. With prices rising and the bolívar losing over 70% of its value since October, many citizens are turning to digital assets to protect their income and savings.
“Lots of places accept it now,” said Victor Sousa, a shopper who used USDT to buy phone accessories. “The plan is to one day have my savings in crypto.”
Businesses across Venezuela now accept cryptocurrency payments through platforms like Binance and Airtm. Some even use stablecoins to pay staff. Universities have begun offering courses on digital assets to meet growing interest.
According to Chainalysis, Venezuela ranked 13th in the world for crypto adoption in 2024, with usage up 110% compared to the previous year.
Economic Pressure Fuels Crypto Growth
The bolívar’s crash has made everyday transactions difficult. Inflation reached 229% in May, according to the Venezuelan Finance Observatory (OVF). Economist Aarón Olmos says people have turned to crypto out of necessity.
“Venezuelans face high inflation, low wages, foreign currency shortages, and challenges with banking access,” Olmos said.
But crypto use isn’t always easy. U.S. sanctions limit services on platforms like Binance for users tied to Venezuela’s banking system, and poor internet connectivity can create additional barriers. Despite this, experts say the local crypto ecosystem remains active and resilient.
Government’s Crypto Efforts Falter
The Venezuelan government has had a mixed relationship with crypto. In 2018, it launched its own digital currency, the petro, which eventually failed. The main crypto regulatory agency was shut down in 2023 after a corruption scandal linked to oil-related transactions.
Crypto Remittances Provide Lifeline
Cryptocurrencies are also helping Venezuelans receive money from abroad. In 2023, about $461 million — or 9% of the total $5.4 billion in remittances — came through digital assets, bypassing traditional services like Western Union, which face high fees and currency shortages.
Rising Military Tensions
Meanwhile, tensions between Venezuela and the United States are increasing. Venezuela has deployed naval ships and drones along its Caribbean coast in response to a U.S. military presence in the region. This follows allegations from the U.S. that President Nicolás Maduro is involved with drug cartels and offers of multi-million-dollar rewards for his and other officials’ capture.
Featured image from: cointelegraph.com