Venezuelan Government Increases USDT Usage Due to Dollar Scarcity

Venezuela’s government has quietly implemented a policy allowing increased use of Tether USDT $1.00 24h volatility: 0.0% Market cap: $168.35 B Vol. 24h: $75.44 B for private sector currency exchanges since June, as US sanctions severely restrict dollar availability, according to multiple sources familiar with the matter.

The South American nation faces acute foreign currency shortages following US restrictions on oil exports, which traditionally provided the primary source of dollars for the Venezuelan economy. Companies seeking to import raw materials must exchange local bolívars for dollars generated through oil trade and foreign card transactions, which are then injected into the exchanges by the central bank.

Oil revenue has declined significantly in recent months. While the US Treasury Department issued a restricted license to Chevron last month, allowing oil exports after a three-month pause, the license blocks payments to the government, further reducing available dollars for exchange.

Banks Begin Facilitating USDT Exchanges for Businesses

According to sources, who requested anonymity due to potential repercussions, a limited number of banks now sell USDT to businesses in exchange for bolívars, as reported by Reuters. Companies must maintain government-approved digital wallets to receive these transactions.

Once businesses obtain USDT, they can either sell the cryptocurrency or use it to pay domestic or international providers. The digital currency helps maintain economic operations amid sanctions, including domestic production of essential goods such as food.

Vice President Delcy Rodríguez acknowledged during an August meeting with business leaders that “non-traditional mechanisms of management in the exchange market” were being implemented. However, she did not provide specific details.

Cryptocurrency Transactions Reach $119 Million in July

Local analyst firm Ecoanalítica estimates that $119 million in cryptocurrencies were sold to the private sector in July alone. This represents a substantial portion of the Venezuelan central bank’s $2 billion injection into the currency exchange market during the first seven months of 2025, which was 14% less than the same period last year.

State-owned oil company PDVSA has been gradually increasing its use of digital currency and shifting sales to USDT since last year. This shift allows Venezuela to bypass traditional banking systems affected by US sanctions.

Since 2019, the Venezuelan government has been attempting to utilize cryptocurrency for payments and circumvent international sanctions. It is worth mentioning that in mid-2024, Tether froze $5.2 million of USDT in 12 suspicious addresses, which were related to the purchase of oil from PDVSA.

The cryptocurrency adoption reflects broader trends in Venezuelan society, where citizens increasingly rely on digital assets to preserve value amid hyperinflation. The 2024 Chainalysis Crypto Adoption Index ranked Venezuela 13th globally after a 110% surge in adoption.

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