Cryptocurrency Redemption in the Face of High Inflation Crisis

Amid an economic predicament where the annual inflation rate reached 229%, Venezuelan citizens have found a different path—massive adoption of cryptocurrencies. During the 2024-2025 period, local crypto trading volume has surpassed $44.6 billion, with stablecoins accounting for over $22 billion of that volume. This is not hype; genuine economic demand is driving it.

Stablecoins as Hard Currency

In daily economic activities such as grocery shopping, signing real estate contracts, receiving salaries, and cross-border remittances—more and more people are bypassing traditional banking systems and directly using USDT for P2P transactions. The speed of this shift is astonishing, with cryptocurrency usage increasing by 110% within a year. Adjusted for population size, Venezuela has climbed to the 9th position in global adoption rankings, only behind some countries and regions with high penetration of traditional cryptocurrencies.

Stablecoins Breakthrough in Oil Trade

Facing comprehensive economic sanctions, Venezuela’s state oil company has made bold innovations—80% of oil export settlements are now conducted using USDT. Funds flow into the country through Asian intermediaries, bypassing financial blockade sanctions and maintaining an average daily export of 856,800 barrels. This has pioneered a new cross-border settlement model combining commodities and stablecoins, also validating the real value of crypto assets in extreme economic environments.

Lessons from the Failure of Official Cryptocurrencies

The Petro, launched in 2018, once boasted great momentum, claiming to be backed by oil reserves and pegged to fiat currency. But reality was harsh—the project ultimately nearly zeroed out and disappeared from the market entirely. This case profoundly illustrates a truth: the survival of cryptocurrencies never depends on official endorsement but on whether the market truly recognizes and needs them.