Stablecoins Step In as Venezuela’s Collapsing Currency Loses All Value

Venezuela’s economic crisis deepened in 2025 as the annual inflation rate reached 229%, pushing millions of citizens to abandon the bolívar in favor of stablecoins like USDT for everyday transactions. According to reports, hyperinflation, strict capital controls, and a fragmented exchange rate system have rendered the national currency nearly obsolete in daily commerce. From small grocery stores to mid-sized businesses, USDT has replaced fiat cash as the preferred settlement method, offering a reliable store of value amid a collapsing financial system [4].

Mauricio Di Bartolomeo, co-founder of Ledn and an immigrant from Venezuela, noted that USDT is now widely used for everything from groceries and condo fees to salaries and vendor payments. He described it as a “better dollar” and a “financial equalizer across social classes,” emphasizing its critical role in stabilizing transactions in an unstable economy [4]. The bolívar is no longer a functional currency for most market participants, as people increasingly price goods and services in USD and settle in stablecoins.

Exchange rate disparities have further accelerated the shift. There are currently three USD exchange rates in Venezuela: the official Central Bank rate (BCV) of 151.57 bolívars per USD, the parallel market rate of 231.76, and the USDT rate on Binance at 219.62. USDT’s liquidity and reliability make it the most used rate among vendors and consumers [4]. Despite capital controls forcing the government to impose strict foreign currency restrictions, economic actors are increasingly circumventing these policies by trading bolívars into stablecoins or USD.

The adoption of USDT in Venezuela is not an isolated phenomenon. Countries facing similar economic challenges—such as Argentina, Turkey, and Nigeria—have seen parallel trends of stablecoin usage as people seek alternatives to failing currencies. According to Chainalysis’ 2025 Global Crypto Adoption Index, Venezuela ranks 18th globally for crypto adoption and 9th when adjusted for population size. Stablecoins accounted for 47% of all Venezuelan crypto transactions under $10,000 in 2024, with overall crypto activity rising 110% in the past year [4].

The government-imposed capital controls have also created a parallel market for foreign currency and digital assets. Official USD allocations are reportedly distributed to regime-connected firms, which resell dollars at parallel rates for profit [4]. Di Bartolomeo said that economic actors refuse to accept the “worthless local currency for payment,” and if they do, they immediately convert it into stablecoins or USD. This dynamic has intensified as the U.S. has imposed additional sanctions on Venezuela, including on its oil sector, prompting some local banks and industries to turn to stablecoins to bypass restrictions [4].

The widespread adoption of USDT in Venezuela reflects a broader global shift in how individuals and businesses respond to economic instability. As traditional fiat currencies lose value and trust, digital alternatives offer a lifeline to millions navigating hyperinflation and capital controls. In the absence of stable government-backed currencies, stablecoins have filled the gap, proving their utility in real-world economic scenarios [4].

Source: [1] Venezuelans Shift to USDT Amid 229% Inflation Rise (https://coincu.com/360580-venezuelans-adopt-usdt-amid-inflation) [2] USDt Replaces Venezuela's Bolívar as Inflation Hits 229% (https://cointelegraph.com/news/usdt-binance-dollars-replace-bolivar-in-venezuela) [3] Tether, El Salvador Deepening Ties to Gold, the 'Natural Bitcoin' (https://finance.yahoo.com/news/tether-el-salvador-deepening-ties-142211843.html) [4] Venezuelas high inflation rate has led to stablecoins such as USDT ... (https://m.odaily.news/en/newsflash/446915)