Venezuelans Turn to Crypto as Currency Collapse Forces Survival Strategy

Cryptocurrency adoption in Venezuela is accelerating as citizens seek alternatives to the rapidly depreciating bolívar, with USDT emerging as a key stablecoin in daily transactions and wealth preservation. According to data from blockchain analytics firm Chainalysis, cryptocurrency usage in the country increased by 110% over the past year, placing Venezuela 13th in the 2024 Crypto Adoption Index [1]. This surge has been driven by hyperinflation and government crackdowns on black-market dollar exchanges, with many businesses and individuals turning to digital assets to hedge against economic instability.

The collapse of the bolívar has been a major catalyst for this shift. Since the government abandoned its defense of the currency in October 2023, it has lost over 70% of its value, while annual inflation reached 229% by May 2024, according to the Venezuelan Financial Observatory (OVF) [2]. As a result, many Venezuelans have started using stablecoins like USDT to protect savings, pay salaries, and conduct business. Merchants in Caracas and beyond now accept payments through platforms such as Binance and Airtm, and some companies have begun paying employees in digital assets to bypass official currency devaluation.

Despite government efforts to suppress black-market dollar trading, the use of cryptocurrencies has continued to grow. Analysts note that the necessity for survival is a key driver. Economist Aarón Olmos from the Central University of Venezuela emphasized that Venezuelans face not only inflation but also low wages, foreign exchange shortages, and difficulty accessing banking services. “They use crypto out of necessity,” he stated [1]. Meanwhile, the government’s inconsistent regulatory approach—marked by the 2018 launch of the failed petro cryptocurrency and the 2023 shutdown of the main cryptocurrency exchange regulator—has further pushed users toward decentralized alternatives.

However, challenges remain. U.S. sanctions on Venezuela’s financial system have limited access to major platforms such as Binance, which has restricted services linked to sanctioned banks and individuals. Despite these limitations, the ecosystem continues to evolve, with universities offering cryptocurrency courses and entrepreneurs adapting to the constraints. For example, Aníbal Garrido, director of a cryptocurrency course at Andrés Bello Catholic University, noted that the community is becoming more rational and informed in the face of adversity [1].

The increasing integration of USDT into daily economic life is evident in both small and large businesses. Accountants like Gabriel Santana use stablecoins to pay suppliers and employees, despite short-term conversion costs, as the long-term benefits of bypassing bolívar depreciation outweigh the risks. Shop owners in Caracas, such as Masiel Bronco, argue that accepting crypto is now a necessity for competitiveness, with many customers opting for digital payments [1].

Source: [1] The Maduro government is cracking down on black market dollar (https://news.futunn.com/en/post/61206904/the-maduro-government-is-cracking-down-on-black-market-dollar) [2] Venezuela's crypto adoption surges amid inflation and (https://cointelegraph.com/news/venezuela-crypto-adoption-bolivar-inflation-2025)