In Venezuela, grappling with soaring inflation, local businesses, apartment managers, and freelancers are increasingly turning to digital solutions for pricing and payments, primarily relying on Tether‘s USDT, which is commonly referred to as Binance dollars locally. By May 2025, the country’s annual inflation rate is expected to hit approximately 229%, resulting in a significant devaluation of Venezuela’s currency, the bolivar. Consequently, Binance P2P has become a convenient reference for daily transactions. The cash dollar scarcity, coupled with the depreciating bolivar and low-cost TRON (TRC-20) transfers, has transformed digital dollars into a fundamental tool for small payments and working capital. Though authorities are trying to deter parallel currency references, a de facto tolerance within the private sector enables the operation of dollar‑linked cryptocurrencies.
Understanding USDT-Based De Facto Dollarization
In Venezuela, most price tags are displayed in US dollars, with collections made using the current P2P USDT rate. Cashiers regularly refresh quotations; buyers send their payment using QR codes towards TRC‑20 addresses, receiving confirmations within seconds. Due to low transaction fees and prevalent wallet usage, digital dollars are advantageous even for small transactions. Businesses partially convert received USDT to the Venezuelan bolivar to cover salaries, bills, and taxes, while suppliers are directly paid in stablecoins.
Last year witnessed a near doubling of blockchain activities in Venezuela, with nearly half of transactions under $10,000 conducted via stablecoins. Households and small businesses have aligned unit accounts and reconciliations to the digital dollar. In May 2025, as monthly inflation surged again and the gap between official and unofficial exchange rates continued to widen, USDT’s credibility as a reference currency strengthened.
Flow on the Ground, Risks, and Expansion Dynamics
Daily exchange rate volatility can result in discrepancies between cash registers and reconciliations. Businesses mitigate currency risk through timestamped invoicing, brief payment windows, and end‑of‑day settlements. Regarding device security and storage, they use PIN/biometric authentication, offline backups of recovery phrases, and, for balances exceeding certain thresholds, hardware wallets.
USDT’s centralized issuance and blacklisting risk compel firms to maintain low balances, use multiple wallets, and employ secure off‑ramps. Additionally, to combat P2P/OTC scams, platform‑based escrow, high reputation scores, on‑chain confirmations, and verifiable payment proofs have become standard practices. Similar to Argentina, countries with high inflation see stablecoins improving access to US dollars for daily transactions in Venezuela.