Venezuela's national currency, the bolívar, has effectively collapsed amid hyperinflation reaching 229% annually in 2025, with cumulative inflation since 2013 estimated at over 10 million percent. This economic crisis has forced millions of Venezuelans to abandon their national currency and adopt Tether's USDt stablecoin for everyday transactions.
USDt, locally known as "Binance dollars," has become the preferred payment method for groceries, salaries, school fees, building maintenance, and business payments. According to entrepreneur Mauricio Di Bartolomeo, co-founder of crypto lender Ledn, "The bolívar is effectively dead for payments," with stablecoins acting as both a superior version of the U.S. dollar and an economic equalizer across all social classes.
Venezuela currently operates with three different exchange rates: the official central bank rate (151.57 bolívars per USD), parallel market rate (231.76), and USDt rate on Binance (219.62). Most vendors and consumers prefer the USDt rate due to its liquidity and stability compared to the constantly changing parallel market rates.
Crypto adoption has surged dramatically, with Venezuela ranking 18th globally for crypto adoption and 9th worldwide on a per-capita basis. Chainalysis data shows crypto activity increased by 110% last year, with stablecoins representing 47% of all Venezuelan crypto transactions under $10,000. Ecoanalítica research indicates that 53% of private-sector transactions are conducted in foreign currency or digital equivalents.
The adoption extends beyond individual users to major institutions. Following renewed U.S. sanctions on crude exports, state oil company PDVSA began demanding partial payments in USDt in mid-2024 to bypass sanctioned banking channels. Local banks have started selling USDt to businesses in exchange for bolívars to avoid international banking restrictions, with Banco de Venezuela reportedly testing stablecoin settlement for corporate clients.
Anova consultancy estimates $1.3 billion in stablecoin transactions passed through Venezuelan platforms in 2024, with Binance P2P dominating. This pattern mirrors broader adoption in other inflation-stricken economies like Argentina, Turkey, and Nigeria, where stablecoins serve as a global hedge against weak currencies.