A further deepening of Venezuela’s dependency on stablecoins could be seen if the Trump administration follows through on its threat of conflict, potentially destabilizing the South American country even more.
The reliance of Venezuela on stablecoins pegged to the US dollar could be intensified amidst a renewed potential for conflict, persistent punitive measures, and the hyperinflation of the bolívar.
The most sophisticated aircraft carrier belonging to the US Department of Defense was dispatched to the Caribbean, close to Venezuela, earlier this week, as intentions to execute military assaults against narcotics rings operating across the South American nation were indicated by President Donald Trump.
Venezuelan criminal organizations have been accused by Trump of trafficking illegal substances into the US, thereby intensifying an opioid and drug crisis. The assertions have been rejected by Venezuelan President Nicolás Maduro, who is pleading with Trump to abstain from initiating hostilities.
Even greater fiscal unsteadiness could be signaled for typical Venezuelans, who depend upon stablecoins such as Tether USDT to safeguard their accumulated funds from dissipating amidst the triple-digit price increases affecting the bolívar.
Stablecoins, or what are known by numerous Venezuelans as “Binance dollars,” have also become frequently mathbfemployed in routine transactions as stores of US dollars throughout the nation have diminished.
A recourse to stablecoins has also been made by the Venezuelan government to expedite the exchange of petroleum with its associates, which includes Russia, a nation with which a tactical alliance was formalized on Monday.
It was reported by The New York Times last Sunday that the ability to “rewire Venezuela’s economy to stablecoins” has been achieved by Maduro, arguably turning it into the inaugural country to manage a significant portion of its governmental finances using crypto.
Stablecoins, it was reported by The New York Times, “now comprise as much as half of the legitimate hard currency that flows into the Venezuelan financial system.”
Venezuela Secures Fourth Place in LATAM Crypto Adoption
The triple-digit inflation and sanctions have contributed to Venezuela ranking as the fourth largest crypto country in Latin America by value received at $44.6 billion from July 2024 to June 2025, which was reported by crypto analytics platform Chainalysis earlier this month.
It only trailed Brazil, Argentina and Mexico, which all have larger populations than Venezuela.
Venezuelan Politician Turns to Crypto to Safeguard Assets
One of the most notable adopters of crypto in Venezuela is Maria Corina Machado, a former Venezuelan presidential candidate who uses Bitcoin (BTC) to protect her assets from being seized, a strategy that is gaining attention in various financial circles.
She was awarded the Nobel Peace Prize earlier this month for her fight to restore democracy in Venezuela and her peaceful resistance against Maduro’s authoritarian regime.
Nearly 8 million Venezuelans have fled the country due to hyperinflation, food and medicine shortages, and public disorder since Maduro came into power in 2013.
Numerous people lost access to their bank accounts, compelling citizens to turn to crypto and stablecoins like USDT to preserve value and transfer whatever wealth they had out of Venezuela.
