Hyperinflation Kills Bolívar, “Binance Dollars” Dominate Economy
Venezuela is experiencing hyperinflation at 229%, forcing millions of citizens to abandon the Venezuelan bolívar in favor of stablecoins like Tether’s USDT. Locally dubbed “Binance dollars”, USDT is now widely used for groceries, salaries, rent, and vendor payments, making it the de facto national currency.
According to Mauricio Di Bartolomeo, co-founder of Ledn, “the bolívar is largely dead in daily commerce,” as Venezuelans seek stable and reliable digital assets to escape inflation and capital controls.
Why Venezuelans Trust USDT Over Bolívar
There are currently three exchange rates in Venezuela:
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BCV (official rate): 151.57 bolívars per USD
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Parallel market rate: 231.76 bolívars per USD
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Binance USDT rate: 219.62 bolívars per USD
Among these, USDT has become the trusted benchmark, thanks to its liquidity, reliability, and ease of use. Vendors and consumers alike prefer to price goods in USD and settle payments with USDT, effectively bypassing the failing fiat system.
Venezuela’s Crypto Adoption Ranks Among the World’s Highest
According to Chainalysis’ 2025 Global Crypto Adoption Index, Venezuela ranks:
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#18 globally in crypto adoption
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#9 per capita, highlighting how widespread stablecoin usage has become.
In 2024, 47% of all Venezuelan crypto transactions under $10,000 involved stablecoins, while overall crypto adoption grew by 110% year-on-year.
From condo fees and security services to grocery stores and small businesses, USDT has fully replaced fiat cash and local bank transfers in Venezuela’s private economy.
Capital Controls Create Parallel Markets
Venezuela’s government continues to enforce strict capital controls, distributing USD only to regime-linked firms, which then resell at inflated parallel rates.
As a result, parallel markets for USD and stablecoins thrive, with ordinary citizens preferring USDT to store value and conduct transactions.
“When people are forced to accept bolívars, they convert them into stablecoins or dollars as fast as possible,” Di Bartolomeo said, emphasizing the inevitability of dollarization via crypto.
Stablecoins as a Lifeline in Failing Economies
Venezuela’s story reflects a broader global trend: in countries like Argentina, Turkey, and Nigeria, where fiat currencies collapse under inflation, stablecoins like USDT and USDC are stepping in as practical alternatives.
For Venezuelans, USDT — the so-called “Binance dollar” — is no longer just a crypto asset, but a survival tool in a hyperinflated economy.
