Venezuela Quietly Shifts to Tether as Sanctions Suffocate Dollar Supply

Venezuela’s government has quietly implemented a policy in June 2025 that permits greater use of Tether (USDT) in private sector currency exchanges, as U.S. sanctions continue to severely restrict the availability of U.S. dollars. The country has been grappling with acute foreign currency shortages following restrictions on oil exports, which historically served as its primary source of dollar inflow. Companies seeking to import goods are now increasingly relying on USDT to facilitate transactions, as traditional avenues for currency conversion become less viable [2].

Businesses in Venezuela are now able to convert bolívars into USDT through government-approved digital wallets, a development reported by Reuters. These digital wallets are managed by a limited number of banks, which facilitate the exchange process. Once businesses obtain USDT, they can either sell the stablecoin on cryptocurrency platforms or use it directly to pay domestic and international vendors. This shift is helping maintain economic operations, particularly in sectors producing essential goods such as food and machinery [2].

According to the local analyst firm Ecoanalítica, $119 million in cryptocurrency transactions were recorded in July 2025 alone, representing a significant portion of the $2 billion injected by the Venezuelan central bank into the currency exchange market during the first seven months of the year. Notably, this volume represents a 14% decline compared to the same period in 2024, underscoring the growing reliance on stablecoins in the absence of sufficient traditional foreign exchange [2].

Venezuela’s state-owned oil company, PDVSA, has also transitioned toward using USDT in its international sales since late 2024. This move allows the company to bypass traditional banking systems that are affected by U.S. sanctions. The adoption of USDT in oil trade is particularly significant, as it helps reduce the risk of funds being frozen and facilitates continued operations in a constrained financial environment. This shift is part of a broader, multi-year strategy by the government to explore alternative financial mechanisms for sustaining economic activity under sanctions [3].

The use of USDT has expanded across various economic activities, including salaries and imports. With the bolívar losing over 70% of its value between October 2024 and June 2025, and inflation remaining at 229%, businesses and individuals are increasingly adopting stablecoins to preserve purchasing power. According to a report by the Financial Times, crypto usage in Venezuela has surged by 110% year-over-year, placing the country among the top 15 nations in on-chain crypto adoption [3].

Despite the growing adoption, the government has remained silent on the policy, with no formal announcements. Vice President Delcy Rodríguez confirmed in August that “non-traditional mechanisms of management in the exchange market” were being used, but provided no further details. Neither the central bank nor the Ministry of Communications has responded to inquiries regarding the official stance. Tether, while declining to comment in 2025, affirmed in 2024 that it complies with the U.S. Treasury’s sanctions list [3].

The rapid integration of USDT into Venezuela’s financial infrastructure highlights the potential role of stablecoins in economies under pressure from sanctions and hyperinflation. While the policy remains unpublicized, the data suggests a pragmatic shift toward digital currencies to sustain economic activity in the absence of traditional financial tools.

Source:

[1] title1 (https://es.finance.yahoo.com/quote/USDT-USD/)

[2] title2 (https://finance.yahoo.com/news/venezuelan-government-increases-usdt-usage-005611230.html)

[3] title3 (https://www.xt.com/en/blog/post/venezuela-turns-to-tether-usdt-as-dollar-access-tightens)