Venezuela has once again turned to stablecoins as a means to counteract the instability of its national currency. The country has a history of cryptocurrency usage, and in 2026, access to stablecoins has become even more convenient for its citizens.
Venezuelans are increasingly adopting stablecoins to mitigate the effects of inflation. Recent events, including US military intervention in Venezuela, have further driven local populations towards cryptocurrency.
Venezuela's crypto adoption index is comparable to that of Germany, and the country has experienced multiple phases of cryptocurrency integration, including through peer-to-peer (P2P) platforms. The use of USDT is also prevalent through unofficial exchange rates with the Venezuelan Bolivar, allowing individuals to bypass the government's less favorable official exchange rate.
Stablecoins are also being utilized within an already dollarized economy. In recent years, merchants across the country have integrated stablecoins as a standard payment method.
Venezuela's Retail Stablecoin Usage Diverges from Government Transfers
Currently, stablecoins are more accessible than ever through a variety of platforms and digital wallets. Stablecoins are effectively dollarizing the cryptocurrency space and entire economies, often chosen for their price predictability. Over the past few years, stablecoins have largely replaced Bitcoin (BTC) and Ethereum (ETH) for everyday transactions.
“Stablecoins are better dollars, but the reason people get them is out of necessity and out of self-preservation,” Mauricio Di Bartolomeo, co-founder of digital asset lender Ledn, told CNBC.
“Wherever they have limitations around dollars flowing freely, stablecoins are going to bust through the door,” he added.
The adoption of USDT in Venezuela began over a decade ago. The current retail usage of stablecoins is distinct from the government's own adoption of USDT. Recent reports indicate that Venezuela is using TRON-based USDT for its oil revenues.
Approximately $182 million of these USDT reserves were recently frozen just days after the country's President Maduro was reportedly arrested by US forces. While there are no direct links identified between the frozen wallets and the petro trade, and Tether has yet to specify which wallets were affected, large-scale USDT usage, particularly on the TRON network, is frequently monitored for potential illegal activities or payments associated with sanctioned regimes.
Venezuelan Citizens Drive Retail Stablecoin Adoption
The Venezuelan bolivar has lost its entire value over the past decade, depreciating from $0.15 per USD. This hyperinflation and the consistent currency crashes have propelled the retail adoption of USDT for remittances.
This retail usage operates independently of the state's cryptocurrency initiatives. Retail transfers are typically smaller in volume and less likely to trigger sanctions or freezes. Although Tether has imposed restrictions on some of its activities within Venezuela, the tokens remain accessible through numerous regional and global exchanges.
Venezuelan users have increasingly turned to P2P markets, such as Binance's platform. Often, retail users attempt to circumvent local restrictions by using Virtual Private Networks (VPNs). Stablecoins can also experience price fluctuations beyond their intended value on certain markets, with USDT reportedly reaching as high as $1.40, according to CNBC reports.
Despite the ongoing instability, stablecoins continue to offer a more reliable alternative compared to Venezuela's national currency, which has effectively lost all its value. Stablecoin payments may also represent a matter of convenience during periods of severe hyperinflation.