Venezuela's reliance on US-dollar pegged stablecoins is likely to intensify due to the looming threat of war, persistent sanctions, and the ongoing hyperinflation of the bolívar.
This week, the US Department of Defense stationed its most advanced aircraft carrier in the Caribbean, positioned near Venezuela. This deployment coincides with President Donald Trump's indication of plans for military strikes against drug cartels operating within the South American nation.
President Trump has accused Venezuelan cartels of smuggling narcotics into the United States, contributing to the nation's opioid and narcotics epidemic. Venezuelan President Nicolás Maduro has refuted these accusations and appealed to President Trump to avoid initiating a conflict.
JUST IN: 🇻🇪🇺🇸 Venezuelan President Nicolas Maduro says he does not want war with the United States.
— BRICS News (@BRICSinfo) October 24, 2025
"No crazy war…please, please, please." pic.twitter.com/d3XwzEiGsY
This situation could lead to further financial instability for ordinary Venezuelans. Many citizens depend on stablecoins, such as Tether (USDT), to safeguard their savings from the rapid devaluation caused by triple-digit inflation affecting the bolívar.
Stablecoins, often referred to by Venezuelans as "Binance dollars," have also become a common medium of exchange for daily transactions as US dollar reserves within the country have diminished.
The Venezuelan government has also utilized stablecoins to facilitate oil trade with allied nations, including Russia. On Monday, Venezuela and Russia formalized a strategic partnership.
The New York Times reported last Sunday that President Maduro has successfully "rewired Venezuela’s economy to stablecoins," potentially making it the first nation to manage a significant portion of its public finances using cryptocurrency.
According to The New York Times, stablecoins now represent "up to half of the hard currency that enters the Venezuelan economy legally."
Venezuela Ranks Fourth in Latin America for Crypto Adoption
The persistent triple-digit inflation and international sanctions have contributed to Venezuela's position as the fourth-largest cryptocurrency adopter in Latin America. Between July 2024 and June 2025, the country received $44.6 billion in crypto value, according to a report by crypto analytics platform Chainalysis.
Venezuela trails only Brazil, Argentina, and Mexico, which have larger populations.
Politician Uses Crypto to Protect Assets
Maria Corina Machado, a former Venezuelan presidential candidate, is a prominent adopter of cryptocurrency in the country. She uses Bitcoin (BTC) to protect her assets from potential seizure.
Machado was awarded the Nobel Peace Prize earlier this month for her efforts to restore democracy in Venezuela and her peaceful opposition to Maduro's authoritarian government.
For the first time in history, the Nobel Peace Prize was awarded to a Bitcoiner.
— Jeff Park (@dgt10011) October 10, 2025
Congratulations to Maria Corina Machado, and also to @HRF who continues to explain to the world what is so obvious to so many-
Bitcoin IS human rights pic.twitter.com/92cHOieeEb
Approximately 8 million Venezuelans have left the country since President Maduro assumed power in 2013. This exodus has been driven by hyperinflation, shortages of food and medicine, and general public disorder.
Many individuals lost access to their bank accounts, compelling citizens to turn to cryptocurrencies and stablecoins like USDT. These digital assets enable them to preserve value and transfer any remaining wealth out of Venezuela.