An increasing flow of USDT payments is progressively replacing dollar transfers in operations in Venezuela with private entities. Independent analyses recently shared by Latam Insights Encore and Asdrúbal Oliveros (Ecoanalítica) indicate that disbursements in tether to private buyers have surpassed cash USD transfers, marking an operational shift in the current exchange regime.
This trend is consistent with major international reports on the phenomenon, particularly the Chainalysis 2024 Global Crypto Adoption Index and specialized reports that have followed the evolution of flows from 2024 to 2025, including journalistic analyses on the role of stablecoins in commercial payments Reuters.
According to data collected by Latam Insights Encore and surveys conducted by local analysts between June and September 2025, numerous SMEs in Caracas, Valencia, and Maracaibo have introduced USDT into recurring payment processes and treasury management. Industry analysts note that the scarcity of banknotes and the spread of P2P wallets have accelerated operational adoption. As a reference, aggregated data published in 2024 indicates an increase in crypto activity in Venezuela close to +110% year-on-year and a share of stablecoins amounting to 47% of retail transactions under $10,000; these values explain the pressure towards digital solutions (update: September 2025).
The data, observed in September 2025 also by Latam Insights Encore, reflects a rapid adaptation of businesses and operators using USDT as a “digital dollar” to manage suppliers, cash flow, and daily transactions. The effect is a smoother payment network in the context of cash shortages and sanction constraints imposed, in part, by the current economic regime. In this context, the reduction of operational friction becomes a tangible competitive advantage throughout the entire value chain.
What Happened and Why It Matters
According to public statements made by Oliveros and reported by the local press, disbursements in USDT to private entities have overtaken cash payments. This shift mainly concerns supplies, settlements with intermediaries, and part of the retail circulation – dynamics also confirmed by the analysis of Latam Insights Encore. That said, the emerging picture is one of a normalization of use in “work” payments, as well as in more frequent transactions.
USDT (Tether) is a stablecoin pegged to the US dollar, issued by Tether. The official documentation explains that it is designed to maintain a stable value and offer fast transfers on public networks. For many Venezuelan operators, it functions as a proxy for the dollar, ensuring the same “unit of account” with less logistical friction.
The result is a wider use of the “digital dollar” in the payment system, impacting monetary transmission and internal liquidity management. It should be noted that the spread also stems from practical conveniences: less cash, more certainty in settlement.
USDT as a Dollar Proxy: Why It Has Established Itself
- Access: ease of receiving and sending without the need to physically carry cash, with lower operational risks.
- Speed: almost instant settlements thanks to the use of compatible blockchains, especially useful for short cycles.
- Traceability: better reconciliation for businesses compared to the use of cash, with benefits for internal control.
- Compatibility: integration with exchanges, wallets, and local payment gateways, already aligned with operators’ habits.
Concrete uses reported in the field
- Payments to suppliers and logistics intermediaries in USDT, even for recurring orders.
- Deposits and corporate treasury management in stablecoins, used as a cash buffer pending settlement.
- Use in retail for recurring purchases in low-margin sectors, where speed is essential.
- Regulation of imports with low documentary complexity, featuring more streamlined processes.
Impact on the Real Economy
- Less friction in payments, thanks to the reduced reliance on USD cash, which eases logistics.
- More stable prices along the supply chain, due to lower exposure to local currency exchange during short-term transactions, especially in the more sensitive segments.
- Integration: improved continuity in flows thanks to cross-border exchanges, with greater predictability.
- Network effect: as the acceptance of the stablecoin grows, the overall liquidity increases, with cumulative impacts.
Regulatory Risks and Possibility of Fund Freezing
The adoption of USDT brings operational benefits but also introduces risks and external dependencies. In particular, the ability for Tether to freeze addresses at the request of authorities, as highlighted by OFAC, remains a critical point, especially in scenarios of international enforcement. Although Tether’s intervention capabilities—such as freezing funds—appear applicable only in specific circumstances, this risk, along with potentially stricter controls by exchanges, represents a factor of uncertainty. Indeed, operational continuity also depends on non-domestic regulatory choices.
Technical risks (issuer and infrastructure)
- Freezing: Tether can block addresses at the request of authorities; the probability is considered medium for specific targets but the impact can be high for the parties involved, especially if sudden.
- Networks: in case of congestion or high fees on certain blockchains, the probability is variable and the impact is moderate, with possible temporary delays.
Legal and Sanction Risks
- International sanctions, such as those imposed by the OFAC, can limit access to services and counterparties. The probability is medium and the impact is high, even in an asymmetric manner.
- Exchanges and gateways might close accounts or intensify KYC/AML checks, with medium probability and medium impact, especially for entities with multiple exposures.
Internal Economic Risks
- Monetary duality: the coexistence of bolívar, USD in cash, and USDT can create friction in prices and transactions, with adjustments not being immediate.
- A potential policy change by Tether can trigger operational shocks, even if limited.
Possible Operational Countermeasures
- Segmentation of wallets: separate critical operations from current ones to minimize risks in case of interventions, preserving continuity.
- Mix of stablecoins and other digital currencies, to diversify the risk associated with a single issuer and reduce concentrations.
- In support of internal transparency, with periodic audits.
Why This Pattern Emerged
The current dynamic is influenced by the scarcity of USD banknotes, sanctions affecting key sectors – particularly the oil industry – and the growing availability of wallets and crypto services. In this scenario, USDT offers a relatively smooth settlement channel widely accepted by operators. Yet, the framework remains sensitive to regulatory or market changes.
Furthermore, a significant portion of the USDT supply is backed by short-term dollar assets, thus reinforcing the perception of stability and the use of the stablecoin as a local store of value in the short term, despite uncertainties related to the issuer’s governance. That said, the risk management choices of individual operators remain crucial.
Data and Signals to Monitor
- Shares of public and private payments settled in USDT compared to cash USD, with attention to seasonality.
- Z-score of merchant adoption in major urban centers of the country, useful for capturing local trends.
- Trend of USDT reserves and issuances/redemptions, monitored in real-time by the issuer, for signs of stress or expansion.
Sectors where USDT is already standard practice
- Low-complexity import-export sector, particularly for the purchase of spare parts and light raw materials, where the speed of settlement matters.
- Retail and services characterized by high cash turnover, with short cycles and low margins.
- Freelance professionals and workers with foreign clients, who find in the stablecoin a practical and predictable means of transaction.
Outlook and Possible Scenarios
- Scenario base: USDT remains the prevailing operational tool in “quick” payments, with gradual growth and increased integration into local gateways, without disruptions.
- Targeted enforcement: stricter controls on specific addresses and intermediaries, which could slow down the use of the stablecoin in certain segments, with selective effects.
- Domestic regulatory intervention: proposals for regulations to ensure transparency, reporting, and specific tax rules on stablecoin flows, with the adoption of thresholds and registers, in a more formalized framework.
In summary
USDT has established itself as the operational dollar in Venezuela, impacting payments and treasury management. The model reduces friction associated with cash usage and supports both domestic and foreign exchanges, while introducing risks related to the issuer, international sanctions, and the governance of the stablecoin.
