Venezuela increases stablecoin use amid U.S. sanctions, inflation, and rising military tensions in the Caribbean.
Stablecoins are seeing growing use in Venezuela as the country faces renewed military threats, ongoing U.S. sanctions, and economic challenges. Citizens and the government have turned to crypto-backed digital dollars to manage trade, savings, and daily transactions.
Stablecoins Used for Protection Against Inflation
However, Many Venezuelans now use stablecoins like Tether (USDT) to preserve their savings due to the rapid inflation of the bolívar. The local currency continues to lose value, pushing residents toward alternatives that maintain purchasing power over time.
These stablecoins, often called “Binance dollars” by locals, are used for everyday expenses and small business transactions. With U.S. dollar cash supplies becoming harder to access, digital stablecoins have filled that gap.
Government Turns to Crypto for Trade and Finance
Reports show that the Venezuelan government has used stablecoins for oil trade with countries such as Russia. According to The New York Times, stablecoins now account for up to half of all hard currency legally entering Venezuela.
The government has reportedly shifted a large part of its public finances to crypto in response to U.S. sanctions. This has helped maintain trade relations while avoiding traditional financial channels that may be blocked or restricted.
Military Presence and Sanctions Increase Stablecoin Dependence
The U.S. recently deployed an advanced aircraft carrier to the Caribbean near Venezuela, citing efforts to combat drug cartels. President Donald Trump said that Venezuelan groups were sending illicit substances into the United States.
In response, President Nicolás Maduro denied the claims and urged the U.S. to avoid military actions. The uncertainty has raised concerns over more financial pressure and risks for the Venezuelan people.
JUST IN: 🇻🇪🇺🇸 Venezuelan President Nicolas Maduro says he does not want war with the United States.
"No crazy war…please, please, please." pic.twitter.com/d3XwzEiGsY
— BRICS News (@BRICSinfo) October 24, 2025
As a result, stablecoin use may grow further, especially if economic restrictions tighten or a conflict affects local markets. Stablecoins offer faster access to value transfers and are not subject to local banking rules.
Crypto Use Expands Among Citizens and Politicians
Crypto adoption has grown across all sectors of Venezuelan society, including among political figures. Maria Corina Machado, a former presidential candidate, is known for using Bitcoin to protect her assets from being seized.
According to Chainalysis, Venezuela ranked fourth in Latin America for crypto adoption by value between July 2024 and June 2025. It follows Brazil, Argentina, and Mexico, countries with larger populations.
Since 2013, nearly eight million people have left Venezuela due to rising inflation, shortages, and economic instability. Besides, many now use crypto to move money abroad and store it securely.
