Venezuela is turning to dollar-pegged cryptocurrencies to shore up its foreign exchange market as US sanctions choke oil revenues and reduce the availability of hard currency.
The government has quietly allowed private businesses to buy and sell USDT, a stablecoin issued by Tether that mirrors the US dollar, in a bid to keep trade moving and maintain supplies of imported goods ranging from machinery to food.
Sanctions shrink Venezuela’s dollar pool
For years, Venezuelan companies seeking to import raw materials relied on central bank interventions to access dollars derived from oil exports. But that channel has narrowed as the United States tightened restrictions on the Nicolás Maduro government.
Washington last month renewed a limited license for Chevron to ship Venezuelan crude after a three-month pause but prohibited payments directly to Caracas. The move reduced the flow of dollars available in the official exchange market, compounding the squeeze from lower oil shipments. Exports in July fell 10% from the previous month, according to vessel tracking data.
The Venezuelan central bank has poured about $2 billion into the currency market in the first seven months of 2025, 14% less than in the same period last year, according to private estimates. “The availability of exchange always has a ceiling,” said lawmaker Orlando Camacho, who leads a guild of medium-sized companies close to the ruling party.
With US dollars getting scarcer, businesses have increasingly turned to digital alternatives.
Stablecoins flow in the marketplace
Since June, the government has been permitted to sell USDT to companies in exchange for bolívars, Venezuela’s battered local currency, according to people familiar with the process. The buyers must hold a government-approved digital wallet, where the crypto is credited before being used to pay suppliers or resold in private transactions.
Ecoanalítica, a Venezuelan analyst firm, estimates that businesses bought roughly $119 million worth of cryptocurrencies in July. Analysts expect the figure to rise as sanctions persist and oil inflows remain limited. “When one operation closes, others open,” one businessperson reportedly said regarding the new reliance on stablecoins.
Vice-President Delcy Rodríguez has acknowledged the use of “non-traditional mechanisms of management in the exchange market” in recent meetings with business leaders, though she stopped short of naming crypto outright.
From failed petro to entrenched Tether
The embrace of stablecoins marks a new chapter in Venezuela’s fraught relationship with digital assets. The government launched its own token, the petro, in 2018 to much fanfare, billing it as an oil-backed cryptocurrency that could anchor the economy. It was quietly abandoned after failing to attract users or investors.
This time, the state is not pushing its own product but leaning on a dollar proxy that already circulates widely. According to the Financial Times, crypto use across Venezuela surged 110% in the 12 months since mid-2024.
Yet Tether itself has faced scrutiny over its role in sanctioned jurisdictions. The company has said it complies with the U.S. Treasury’s list of banned entities and did not comment directly on Venezuelan usage this year.
For now, stablecoins offer Caracas a breathing space. By allowing limited, regulated use of USDT, the government can ease pressure on businesses while conserving scarce physical dollars for its own priorities.
