As Venezuela's annual inflation rate soars to 229%, stablecoins like USDt have become the de facto currency for millions in the country's crumbling financial system.
Mauricio Di Bartolomeo, co-founder of Ledn, who fled Venezuela in 2018, told Cointelegraph that Tether's USDt, once limited to cryptocurrency-savvy users, is now widely used in Venezuela for everything from groceries and apartment fees to salaries and vendor payments, commonly referred to locally as "Binance dollars."
Venezuela's national currency, the bolívar, is essentially dead in everyday commerce. Hyperinflation, strict capital controls, and a fragmented exchange rate environment have driven a growing preference for stablecoins over cash or local bank transfers.
Currently, there are three exchange rates for the dollar in Venezuela. The official rate from the Central Bank (BCV) is 1 dollar to 151.57 bolívars, the parallel market rate is 231.76, and the USDt rate on Binance is 219.62. The liquidity and reliability of USDt make it the most commonly used exchange rate among vendors and consumers.
"People and companies prefer to price goods and services in dollars and receive payments in dollars," Di Bartolomeo said. He noted that USDt now serves as a better dollar and a financial equalizer across social classes.
According to Chainalysis's 2025 Global Cryptocurrency Adoption Index, Venezuela ranks 18th globally and 9th when adjusted for population. In 2024, stablecoins accounted for 47% of all cryptocurrency transactions under $10,000 in Venezuela, with overall cryptocurrency activity growing by 110% last year.
Di Bartolomeo stated that even everyday expenses like apartment fees, security services, and gardening are now quoted and paid in stablecoins. From small grocery stores to medium-sized businesses, USDt has replaced fiat cash as the preferred settlement method.
Larger state-owned entities still peg to the central bank rate, but most market participants prefer the efficiency and accessibility of Binance dollars.
The capital controls implemented by the Venezuelan government have also led to a parallel market for foreign currencies and digital assets. Reports indicate that official dollar quotas are allocated to companies linked to the regime, which resell dollars at parallel rates for profit.
"Capital controls have also created a parallel market for cash and stablecoins, as economic participants refuse to accept worthless local currency as payment," Di Bartolomeo said. "If they reluctantly accept it, they are eager to exchange it for stablecoins or dollars."
In countries facing currency instability and capital controls, cryptocurrency adoption is accelerating as people seek alternatives to failing currencies. Venezuela, Argentina, Turkey, and Nigeria follow a similar pattern, with locals turning to stablecoins amid soaring inflation.
Di Bartolomeo noted that after the latest round of U.S. sanctions on Venezuela, including on the oil sector, some local banks have also turned to stablecoins.
"Oil companies and other industries are increasingly turning to them," he said. "Reports indicate that a limited number of local banks have begun selling USDt to some businesses in exchange for bolívars to avoid restrictions."
Related: Gemini launches derivatives and Ethereum (ETH) and Solana (SOL) staking services in Europe
Original article: “As Inflation Hits 229%, Venezuelans Are Abandoning Bolívars for Stablecoins Like USDT”
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