Bitcoin News Today: Venezuela Bets on Tether to Keep Oil Flowing Amid Dollar Shortage

Venezuela’s economic crisis has deepened, with annual inflation hitting 229%, prompting the government to increasingly rely on Tether’s USDt to maintain economic activity. Amid U.S. sanctions that have crippled traditional avenues for dollar liquidity, the government has implemented measures to allow private businesses to access USDt for currency exchanges. This shift aims to stabilize domestic production and facilitate trade, as oil revenue, the country’s primary foreign exchange earner, continues to decline.

According to sources familiar with the situation, a limited number of banks are now selling USDt to businesses in exchange for bolívars, though such transactions require government-approved digital wallets to ensure compliance with regulatory measures. Once obtained, businesses can use USDt to pay domestic or international vendors, helping to maintain essential imports and services in the face of severe foreign currency shortages. The practice marks a significant departure from conventional banking systems and highlights the role of stablecoins in circumventing financial restrictions.

Local analytics firm Ecoanalítica estimated that $119 million in cryptocurrencies were sold to the private sector in July 2025 alone, underscoring the growing scale of this workaround. This volume represents a notable portion of the Central Bank of Venezuela’s $2 billion injection into the exchange market during the first seven months of 2025. The central bank’s liquidity has, however, fallen by 14% compared to the same period in 2024, further amplifying the need for alternative means of dollar liquidity.

The state-owned oil company, PDVSA, has also been gradually shifting oil sales to USDt since 2024. This strategy allows Venezuela to bypass U.S.-sanctioned financial systems and inject hard currency into the domestic economy. More than half of crude oil cargoes are now partially or fully paid for in USDt, facilitating a critical lifeline for businesses and services. The move reflects broader global trends, where stablecoins are being increasingly used in commodity transactions to sidestep geopolitical restrictions and reduce reliance on traditional banking infrastructure.

However, the strategy is not without risks. Tether, while widely used, is a centralized entity and can comply with U.S. Treasury sanctions by freezing accounts tied to blacklisted entities. In mid-2024, for example, Tether froze $5.2 million of USDt linked to PDVSA transactions, illustrating the vulnerability of relying on a single issuer. This raises concerns about long-term sustainability, particularly in a context where U.S. financial pressure remains intense.

As the government seeks alternative financial tools to stabilize the economy, the potential of decentralized blockchain infrastructure—such as Bitcoin-based layer-2 solutions—has been discussed among analysts. These systems could offer faster, more resilient, and censorship-resistant payment mechanisms. However, adoption faces technical and infrastructural hurdles, particularly in high-value transactions such as oil exports, where speed and scalability are essential. For now, USDt remains a critical instrument in Venezuela’s financial toolkit, even as the country grapples with the broader implications of its deepening economic crisis and its reliance on U.S. dollar substitutes.

Source:

[1] Venezuela Uses USDT For Oil Payments: Is Bitcoin L2 the Answer? (https://99bitcoins.com/news/presales/venezuela-turns-to-usdt-for-oil-payments-is-bitcoin-layer-2-could-be-the-real-answer/)

[2] Venezuelan Government Increases USDT Usage Due to (https://finance.yahoo.com/news/venezuelan-government-increases-usdt-usage-005611230.html)