Venezuelans Turn to Crypto as Escape from Collapsing Currency and Chaos

Venezuela's cryptocurrency adoption has accelerated significantly in the wake of the bolívar's sharp devaluation and surging inflation, with digital assets becoming a central part of economic activity for many citizens. According to the Chainalysis 2024 Crypto Adoption Index, Venezuela ranked 13th globally in crypto usage, with a 110% year-over-year increase in adoption. This surge reflects a shift in consumer behavior, as individuals and businesses seek alternatives to a rapidly depreciating local currency and a volatile financial system. The bolívar has lost over 70% of its value since the government ceased defending the currency in late 2023, while annual inflation reached 229% in May 2025, according to the Venezuelan Finance Observatory (OVF).

Merchants across the country, from small family-run shops to large national chains, are now widely accepting cryptocurrencies through platforms such as Binance and Airtm. Some businesses even pay employees in stablecoins like Tether (USDT), which provide a more stable value compared to the bolívar. Shoppers and workers alike are increasingly using crypto as a means of preserving value and facilitating transactions, with many expressing a long-term intention to transition their savings to digital assets. For example, one shopper noted that he used USDT to purchase phone accessories, emphasizing that "the plan is to one day have my savings in crypto," as reported by the Financial Times.

Crypto remittances have also become a vital financial lifeline for many Venezuelans. In 2023, digital assets accounted for $461 million in remittances, or 9% of the $5.4 billion total sent to the country. Families are increasingly turning to crypto for cross-border transfers due to the limitations of traditional remittance services like Western Union, which face issues such as high fees, delays, and currency shortages. The rise of stablecoins has provided a faster, more cost-effective solution, allowing for near-instantaneous transfers with minimal intermediary costs.

Despite the growing adoption, challenges persist. US sanctions on Venezuela's financial system have restricted services for some users, with platforms like Binance limiting access for accounts linked to sanctioned banks or individuals. Additionally, poor internet connectivity in certain regions hinders seamless transactions. The government's approach to crypto has also been inconsistent, exemplified by the failed petro project—a state-backed digital currency launched in 2018 that was officially abandoned in 2024. Regulatory uncertainty remains a concern, as the country's main crypto regulator was dissolved in 2023 amid corruption allegations related to oil-linked transactions.

Meanwhile, Venezuela’s geopolitical tensions with the US have intensified, with recent military deployments and increased sanctions against high-ranking officials. These developments add pressure to an already fragile economy, further reinforcing the role of cryptocurrencies as a tool for financial resilience. Analysts suggest that while adoption is strong, sustainable growth will depend on overcoming infrastructural and regulatory hurdles, as well as improving access to digital tools and financial literacy.

Source:

[1] Venezuela's crypto adoption surges amid inflation and ... (https://cointelegraph.com/news/venezuela-crypto-adoption-bolivar-inflation-2025)

[2] How Crypto Became an Everyday Tool in Venezuela (https://cryptorank.io/news/feed/4ee00-how-crypto-became-an-everyday-tool-in-venezuela)

[3] Venezuela turns to crypto as bolívar collapses and US tensions rise (https://cryptorank.io/news/feed/01091-venezuela-turns-to-crypto-as-bolivar-collapses-and-us-tensions-rise)

[4] Venezuela, boom of stablecoin in payments (https://en.cryptonomist.ch/2025/08/27/venezuela-boom-of-stablecoin-in-payments-in-2023-9-of-remittances-are-already-in-crypto-chainalysis-chainalysis/)