Venezuela’s reliance on stablecoins, particularly those pegged to the US dollar, is expected to increase if geopolitical tensions escalate, leading to further financial instability in the nation.
Recently, the US Department of Defense has moved its most advanced aircraft carrier to the Caribbean near Venezuela, amidst President Donald Trump’s suggestions of potential military action against the drug cartels in the region.
Trump has alleged that these Venezuelan cartels are responsible for smuggling drugs into the US, contributing to the national opioid crisis. In response, Venezuelan President Nicolás Maduro has publicly asked Trump to avoid conflict, stating, “No crazy war…please, please, please.”
The financial situation for ordinary Venezuelans could worsen, as they heavily depend on stablecoins like Tether (USDT) to protect their savings from the rampant inflation of the bolívar.
Stablecoins, often referred to in Venezuela as ‘Binance dollars,’ are also being utilized for everyday transactions due to the scarcity of US dollar reserves in the country.
Moreover, the Venezuelan government is increasingly turning to stablecoins to facilitate oil transactions with allies including Russia, as it has developed a strategic partnership with them.
According to reports, Maduro has effectively aligned Venezuela’s financial operations with stablecoins, making it a pioneer in managing public finances using cryptocurrency.
As indicated by the crypto analytics firm Chainalysis, Venezuela now ranks fourth in Latin America for cryptocurrency adoption, having received $44.6 billion in crypto from July 2024 to June 2025, trailing only Brazil, Argentina, and Mexico.
Maria Corina Machado, a notable political figure in Venezuela and a former presidential candidate, utilizes Bitcoin to safeguard her assets against seizure, and she was awarded the Nobel Peace Prize recently for her efforts in restoring democracy in the country.
The recent exodus of nearly 8 million Venezuelans since Maduro’s presidency, largely due to hyperinflation, illustrates the urgent need for alternatives like cryptocurrencies to preserve wealth.
