Stablecoins, particularly Tether’s USDt (USDT), have become essential for millions of Venezuelans grappling with a beleaguered financial landscape, as the nation experiences staggering annual inflation of 229%. Once predominantly utilized by tech-savvy individuals, USDt has transitioned into a mainstream currency in Venezuela, commonly referred to as “Binance dollars.” According to Mauricio Di Bartolomeo, co-founder of Ledn and a former Venezuelan resident, this digital currency is now used for everyday transactions, ranging from grocery purchases to salary payments.
The national currency, the bolívar, has practically lost its value in day-to-day transactions. Hyperinflation, coupled with strict capital controls and a fragmented exchange rate system, has contributed to a rising preference for stablecoins over cash or conventional bank transfers. Currently, there are three separate exchange rates for the US dollar in Venezuela: the official Central Bank of Venezuela (BCV) rate at 151.57 bolívars per USD, the parallel market rate at 231.76 bolívars, and the USDt rate on Binance, which sits at 219.62 bolívars. The liquidity and reliability of USDt have made it the favored choice among both consumers and vendors.
Di Bartolomeo noted that many individuals and businesses now prefer to price goods and services in USD while receiving payments in the same currency. He emphasized that USDt serves not only as a more stable dollar but also as a financial equalizer across different social classes in the country.
Venezuela ranks ninth globally in cryptocurrency usage per capita, according to Chainalysis’ 2025 Global Crypto Adoption Index. The country currently sits at 18th in overall crypto adoption but climbs to ninth when adjusted for population. Notably, stablecoins facilitated 47% of all Venezuelan crypto transactions below $10,000 in 2024, while the overall volume of crypto activity surged by 110% within the last year.
Di Bartolomeo explained that everyday expenses such as condo fees, security services, and even gardening services are now commonly priced and paid for using stablecoins. Small retailers and medium-sized enterprises have largely replaced fiat cash with USDt as their preferred settlement method. Although larger state-owned enterprises typically adhere to the BCV exchange rate, most market players favor the efficiency and accessibility of the Binance dollar.
Furthermore, the government-imposed capital controls have given rise to a parallel market for foreign currency and digital assets. It has been reported that official USD allocations are distributed to firms with connections to the government, who then resell those dollars at more lucrative parallel market rates. Di Bartolomeo noted, “Capital controls create a parallel market for cash and stablecoins, as economic actors refuse to accept the worthless local currency for payment. When they do, they often rush to exchange it for stablecoins or USD.”
In countries like Venezuela, Argentina, Turkey, and Nigeria, where monetary instability and capital controls prevail, the adoption of cryptocurrencies is accelerating as individuals seek alternatives to failing local currencies. Di Bartolomeo remarked that in response to recent U.S. sanctions targeting Venezuela, especially its oil sector, some local banks have begun to pivot toward stablecoins. He pointed out that industries like oil are increasingly adopting stablecoins, with a limited number of local banks reportedly starting to sell USDt to businesses in exchange for bolívars to navigate regulatory constraints.
