TLDR
- Venezuela’s inflation rate has reached 229%, making stablecoins like USDt the preferred payment method for everyday transactions
- USDt, known locally as “Binance dollars,” is now used for groceries, salaries, and business payments instead of the collapsing bolívar
- Venezuela ranks #9 globally for per capita crypto use, with crypto activity rising 110% last year and stablecoins accounting for 47% of transactions under $10,000
- Three different USD exchange rates exist in Venezuela: official bank rate (151.57), parallel market (231.76), and USDt rate on Binance (219.62)
- Local banks have started selling USDt to businesses in exchange for bolívars to avoid US sanctions restrictions
Venezuela’s national currency has become nearly worthless as the country faces annual inflation of 229%. Citizens now rely on Tether’s USDt stablecoin for daily purchases and business transactions.
The bolívar has lost more than 70% of its value in recent months. This collapse forced millions of Venezuelans to abandon their national currency. They now use USDt, locally called “Binance dollars,” for everything from buying groceries to paying salaries.
End-game fiat stuff happening in Venezuela
Bitcoin and stablecoin use surging
The local currency is losing ~75% of its value every 6 months
Independent economists trying to publish inflation data are targeted and arrested pic.twitter.com/SMhokZnrYy
— Alex Gladstein 🌋 ⚡ (@gladstein) September 2, 2025
Mauricio Di Bartolomeo, who left Venezuela before founding crypto lending platform Ledn in 2018, says the stablecoin has replaced cash completely. People and companies now price goods in USD and prefer payment in USDt rather than bolívars.
The switch affects all social classes and business types. Small neighborhood stores, mid-sized companies, and service providers all quote prices in stablecoins. Even routine expenses like building maintenance fees and security services are paid in USDt.
Multiple Exchange Rates Create Confusion
Venezuela currently operates three different exchange rates for US dollars. The official Central Bank rate stands at 151.57 bolívars per USD. The parallel market rate is 231.76 bolívars per USD.
USDt trades at 219.62 bolívars per USD on Binance. Most vendors and consumers prefer this rate because of USDt’s liquidity and reliability. The stablecoin offers more stability than the constantly changing parallel market rates.
Government-controlled entities still use the official exchange rate. However, most private businesses and individuals avoid this rate. They find the Binance dollar more efficient and accessible for daily transactions.
Crypto Adoption Surges Across Venezuela
Venezuela now ranks 18th globally for crypto adoption according to Chainalysis. When adjusted for population, the country ranks 9th worldwide. This places Venezuela among the top nations for per capita crypto use.
Stablecoins represented 47% of all Venezuelan crypto transactions under $10,000 in 2024. Overall crypto activity in the country increased by 110% last year. These numbers show how quickly Venezuelans embraced digital currencies.
The government’s capital controls pushed people toward parallel markets. Official USD allocations go to companies connected to the regime. These firms then resell dollars at higher parallel rates for profit.
Banks and Oil Companies Embrace Stablecoins
Recent US sanctions on Venezuela’s oil sector pushed more institutions toward crypto. Some local banks now sell USDt to businesses in exchange for bolívars. This helps companies avoid international banking restrictions.
Oil companies and other industries are also using stablecoins more frequently. The digital currencies allow them to conduct business despite international sanctions. This trend shows how crypto adoption extends beyond individual users.
Capital controls create parallel markets for both cash and digital assets. Economic actors refuse to accept worthless bolívars for payment. When they do accept the local currency, they quickly convert it to stablecoins or USD.
According to Di Bartolomeo, USDt functions as both a better dollar and a financial equalizer. The stablecoin gives all social classes access to a stable currency regardless of their banking relationships or government connections.
