Venezuela turned to cryptocurrencies in 2025 after the government abandoned its defence of the bolívar in October, with the national currency losing more than 70% of its value and inflation reaching 229% by May 2025 according to the Venezuelan Finance Observatory (OVF). The Chainalysis 2024 Crypto Adoption Index ranked Venezuela 13th globally, reflecting a 110% surge in adoption over the previous year, as stablecoins, particularly USDT, have become essential tools for everyday financial survival.
Corner shops and major retail chains alike now accept crypto payments through platforms such as Binance and Airtm, and some businesses have begun paying employee salaries in stablecoins to preserve value. Economist Aarón Olmos from the Institute of Higher Studies in Administration in Caracas stated that Venezuelans adopted cryptocurrencies out of sheer necessity, citing inflation, suppressed wages, foreign currency shortages, and difficulty opening bank accounts as key drivers. Crypto remittances accounted for 9% of the $5.4 billion in remittances sent to the country in 2023, approximately $461 million, and universities have responded by introducing dedicated courses, with the Andrés Bello Catholic University in Caracas launching a cryptocurrency curriculum. The Maduro government's stance has remained contradictory: the state-backed Petro cryptocurrency launched in 2018 was quietly abandoned last year, the main exchange regulator was shut down in 2023 amid corruption allegations, and operators of black-market exchange rate websites have been detained, while the central bank has not published inflation data since October and independent economists have been arrested. U.S. sanctions further complicate the landscape, with Binance restricting services linked to sanctioned banks and individuals and freezing associated accounts.
Venezuela's experience demonstrates how economic crisis and the erosion of institutional trust accelerate mainstream crypto adoption in the developing world, with stablecoins emerging as an alternative financial infrastructure for value preservation, payments, and cross-border remittances.
Sources:
- https://www.ft.com/content/dc68b9c5-e2f7-4403-8887-e2895265afb0
- https://www.cryptopolitan.com/crypto-surges-in-venezuela/
- https://cointelegraph.com/news/venezuela-crypto-adoption-bolivar-inflation-2025
- https://coinfomania.com/venezuela-embraces-stablecoins-amid-bolivar-collapse-and-soaring-inflation/
- https://coincentral.com/venezuela-embraces-crypto-for-survival-as-hyperinflation-ravages-economy/
