KEY FACTS: In Venezuela, rampant inflation reaching 229% has driven the near-total abandonment of the bolívar in favor of stablecoins like Tether’s USDt, known locally as “Binance dollars,” which now dominate daily transactions from grocery purchases to payrolls. With a fractured exchange rate system, featuring an official rate of 151.57 bolívars per USD, a parallel market rate of 231.76, and a Binance USDt rate of 219.62, USDt has become the preferred currency due to its liquidity and stability, especially amidst U.S. sanctions limiting dollar access. Even the state oil company PDVSA has shifted to USDT for crude oil sales, while private firms purchased $119 million in cryptocurrencies in July 2025 alone.
Source: Coinfomania
"Binance Dollars" Stablecoin Overtake Bolívar in Venezuela as Inflation Soars to 229%
The Venezuelan bolívar, once the cornerstone of the country’s financial system, is rapidly fading into obscurity. With annual inflation skyrocketing to 229%, Venezuelans are abandoning their national currency in favor of stablecoins like Tether’s USDt (USDT), colloquially dubbed “Binance dollars.” From grocery stores to payrolls, stablecoins have become the de facto currency for millions navigating a crumbling financial landscape, signaling a profound shift in how Venezuelans conduct everyday transactions.
The bolívar’s decline is hardly surprising. Years of hyperinflation, coupled with stringent government-imposed capital controls and a fractured exchange rate system, have rendered the national currency nearly worthless in daily commerce. What was once a currency restricted to crypto-savvy individuals has now permeated all levels of Venezuelan society, with USDt being used for everything from condo fees to vendor payments.
Venezuela’s economic crisis has created a complex and chaotic exchange rate environment. Currently, three distinct rates for the US dollar exist in the country: the official Central Bank rate (BCV) at 151.57 bolívars per USD, the parallel market rate at 231.76, and the USDt rate on Binance at 219.62. Among these, USDt has emerged as the preferred benchmark due to its liquidity and reliability, making it the go-to choice for vendors and consumers alike.
This preference for stablecoins stems from their ability to provide stability in a country where the bolívar’s value can plummet overnight. Unlike cash, which is scarce and subject to tight government controls, or local bank transfers, which are hindered by inefficiencies, USDt offers a liquid, transferable, and trusted alternative. Small businesses, from corner bodegas to mid-sized enterprises, now quote prices and settle transactions in stablecoins. Even routine expenses like security services, gardening, and condominium fees are increasingly paid in USDt, reflecting its widespread adoption.
The rise of stablecoins in Venezuela is not merely a response to inflation but also a workaround for external pressures. The United States has imposed stringent sanctions on Venezuela, particularly targeting its oil sector, which has historically been the country’s primary source of foreign currency. These sanctions have severely restricted access to US dollars, forcing businesses and individuals to seek alternatives. There are revelations that some local banks have begun selling USDt to select businesses in exchange for bolívars to bypass these restrictions.
The Venezuelan government’s policies have inadvertently fueled this shift. Official USD allocations are often funneled to regime-connected firms, which resell dollars at higher parallel market rates for profit, creating a black market for both cash and digital assets. When bolívars are reluctantly accepted, they are quickly converted into USDt to preserve value before prices shift again.
The state oil company, PDVSA, has also begun transitioning crude oil sales to USDT payments as traditional banking channels face increasing restrictions, underscoring the extent to which even government entities are turning to cryptocurrencies. In July 2025 alone, private local firms purchased $119 million worth of cryptocurrencies as an alternative to scarce traditional dollar exchanges, a testament to the scale of adoption.
Venezuela’s embrace of cryptocurrencies is part of a trend in countries grappling with monetary instability. According to Chainalysis’ 2025 Global Crypto Adoption Index, Venezuela ranks 18th globally and 9th when adjusted for population, with overall crypto activity surging by 110% in 2024. Stablecoins accounted for 47% of all Venezuelan crypto transactions under $10,000 last year, underscoring their dominance in small-scale, everyday commerce.
The government’s stance on cryptocurrencies has been inconsistent. In 2018, Venezuela introduced its own digital currency, the Petro, in an effort to circumvent sanctions and stabilize the economy. However, the project collapsed in 2024 amid skepticism and allegations of corruption. The main exchange regulator was also shut down in 2023 following corruption scandals tied to oil-linked transactions, leaving the regulatory landscape uncertain.
The rise of stablecoins has also sparked political discussions. Opposition leader Maria Corina Machado has proposed creating a national Bitcoin reserve to rebuild Venezuela’s financial stability, reflecting growing recognition of cryptocurrencies’ potential role in economic recovery. This proposal comes as the central bank’s efforts to stabilize the bolívar falter, with a 14% decrease in dollar injections into the currency market in the first seven months of 2025 compared to the previous year. Socially, USDt has become a unifying force, bridging gaps between classes. Stablecoins have democratized access to a stable medium of exchange across all strata.
Venezuela’s shift to stablecoins offers a stark example of what happens when a fiat currency fails. Across Argentina, Turkey, and Nigeria, similar patterns are emerging as citizens turn to digital assets to shield themselves from inflation and currency devaluation. Venezuela, however, stands out as a case study in how cryptocurrencies can step in to fill the void left by a collapsing financial system.
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