What’s Happening in Venezuela?
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As Venezuela’s national currency, the bolívar, loses more than 70% of its value and inflation soars (reaching 229% in May), citizens are increasingly relying on cryptocurrencies, especially stablecoins like USDT, to protect their savings and conduct everyday transactions.
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Crypto adoption has surged by 110% in 2024, placing Venezuela 13th globally in the Chainalysis Crypto Adoption Index.
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From corner shops to large retailers, many businesses now accept crypto via platforms like Binance and Airtm. Some employers are even paying salaries in digital currencies. Local universities are also starting to offer courses on blockchain and crypto.
Why This Matters – A Beginner’s Perspective
Crypto as a Safe Haven – With currencies crashing, digital dollars (usdt) help protect savings from inflation.
Everyday Use Cases – Crypto isn’t just speculative, people are using it to shop, get paid and study it.
High Adoption Rates – A 110% rise in usage and top-15 global ranking show crypto’s real adoption in action.
Remittances Evolve – In 2023, 9% of remittances (≈ $461M) were sent in crypto, offering faster and cheaper transfers.
Obstacles Still Exist – U.S. sanctions, platform restrictions, and poor internet in rural areas limit access.
What’s Driving This Trend?
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Eroding Bolívar & Skyrocketing Inflation
The government stopped defending the bolívar in October, triggering a rapid decline. By May, inflation had surged to 229%. -
Growing Use of Crypto for Daily Life
Stablecoins, especially USDT, are being used for everything from grocery shopping to paying staff. The adoption trend is accelerating across Venezuela’s economy. -
Crypto Remittances as a Lifeline
Families rely on digital currencies to receive money from abroad, cryptos account for nearly 9% of all remittance volume (~$461 million in 2023). -
Regulatory Instability & Sanctions
The government’s crypto regulation is inconsistent, its own token, the Petro, failed and its crypto regulator has been dismantled. Meanwhile, U.S. sanctions limit platform access.
Summary
Amid hyperinflation and the collapse of its currency, Venezuela is seeing a crypto revolution powered largely by necessity. Citizens, businesses and even universities are embracing stablecoins as a lifeline, showing how digital assets can offer stability when traditional systems fail. Despite ongoing challenges like limited access and government unpredictability, crypto has become a vital part of financial survival in Venezuela.
