Amid inflation reaching 229% on an annual basis, the Tether's stablecoin USDT has effectively displaced the national currency - the bolivar - from everyday transactions among Venezuelans. Locals call it "Binance Dollars" and use it for all types of payments: from buying groceries to paying utility bills and wages. This was recounted in an interview with Hash Telegraph by Ledn's co-founder Mauricio Di Bartomeo, who left Venezuela in 2018.
The bolivar has practically vanished from trade due to hyperinflation, strict currency controls, and a fragmented exchange rate system. Venezuelans prefer stablecoins to cash and local bank transfers. Three different exchange rates for the US dollar exist in the country:
Official Central Bank rate - 151.57 bolivars per dollar;
Parallel market - 231.76 bolivars;
USDT rate on Binance - 219.62 bolivars.
It is the USDT rate, thanks to its high liquidity and reliability, that has become a benchmark for sellers and buyers. "Individuals and companies prefer to list prices of goods and services in US dollars and receive payment in the same currency," explained Di Bartomeo. USDT has become the "best dollar" and financial equalizer for all social classes, including small shops, medium enterprises, and even services like gardening or security.
According to the Chainalysis Global Cryptocurrency Adoption Index for 2025, Venezuela ranks 18th in the world and 9th per capita. Stablecoins accounted for 47% of all transactions under $10,000 in 2024, with overall crypto activity up 110%. Even common expenses, such as condominium maintenance, are now paid in USDT. Major state entities stick to the Central Bank's rate, but the market at large opts for the efficiency of the "Binance Dollar".
Government currency control has led to the emergence of parallel markets for foreign currency and digital assets. Official dollar allocations are reportedly handed out to regime-affiliated companies, which resell them at parallel rates for profit. "Currency control also creates a parallel market for cash and stablecoins, as economic actors refuse to accept the worthless local currency as payment," noted Di Bartomeo. If the bolivar is accepted, it is quickly exchanged for USDT or US dollars.
Following new US sanctions, including in the oil sector, banks, and industries like petroleum companies, are increasingly turning to stablecoins. Some local banks sell USDT to enterprises in exchange for bolivars, circumventing restrictions.
The situation in Venezuela illustrates a global trend: in countries with monetary instability, such as Argentina, Turkey, and Nigeria, stablecoins accelerate cryptocurrency adoption. USDT provides stability and accessibility where fiat fails, fostering financial inclusion. This is not only a lifeline for citizens but also demonstrates blockchain's potential in the real economy.