In Venezuela, the stablecoin USDT has effectively replaced the bolivar and has become the primary unit of account in the country’s market due to hyperinflation and currency restrictions.
This is reported by Business • Media
- USDT has replaced the bolivar in everyday transactions.
- Residents of the country refer to this stablecoin as the “Binance dollar.”
- The main reason is hyperinflation, which has reached 229%.
How USDT Became the Main Currency in Venezuela
Venezuela is experiencing a wave of unofficial dollarization, this time through the widespread use of the stablecoin USDT. The local population already calls it the “Binance dollar.” As a result of hyperinflation at 229%, prices for goods and services are increasingly being quoted in Tether (USDT), based on the Binance P2P exchange rate. Thus, USDT has become the primary unit of account, displacing the bolivar.
Most sellers set prices not according to the official bolivar exchange rate, but based on the so-called “Binance dollar,” which is derived from P2P market quotes. In the country, there are three benchmarks for assessing the exchange rate: the official rate from the National Bank, the parallel “dólar negro,” and the P2P rate, which has now become key for most of the market.
“Invoices now list amounts in ‘Binance dollars’ because pricing has detached from the bolivar and moved to the blockchain,” analysts note.
The reasons for this transition include the rapid devaluation of the national currency, a shortage of cash dollars due to sanctions, and the growing popularity of digital payments. In May 2025, monthly inflation reached 26%, making the use of the bolivar practically impossible for pricing.
Features of Using “Binance Dollars” and Risks
The term “Binance dollars” refers to USDT, the value of which is determined on P2P platforms, primarily Binance. This rate is used by shops, property managers, and freelancers. It has become not only a reference but also the basis for making payments.
Most transactions are conducted through the TRON network (TRC-20), which offers minimal fees and fast transaction speeds. The buyer scans a QR code with the shop’s TRC-20 address, and payment confirmation arrives almost instantly.
The shift to stablecoins has occurred due to three key factors: hyperinflation, currency restrictions, and sanctions. Officially, the government has not allowed transactions in dollars; however, it has “silently” agreed to the use of cryptocurrencies to support economic activity. This has enabled the population to pay for products, services, and rent in USDT, while businesses can settle with suppliers and even pay bonuses or part of salaries in stablecoins.
In 2024, the share of stablecoins in remittances under $10,000 reached 47%, and overall on-chain activity in the country doubled.
Users face risks such as exchange rate volatility, P2P fraud, phone theft, and platform restrictions. To mitigate risks, Venezuelans use Binance escrow services, check counterparty ratings, store large sums in cold wallets, and regularly update exchange rates before making payments.
In April 2024, the state oil company PDVSA began settling in USDT to circumvent sanctions, and in September 2024, opposition leader María Corina Machado referred to Bitcoin as a “lifeline” for the country. Despite a ban on cryptocurrency mining in 2024 aimed at protecting the energy grid, the government does not hinder the use of stablecoins, which have effectively become part of Venezuela’s financial system.