It seems Venezuela’s economy is finding its way around U.S. sanctions in a manner few would have predicted. With oil revenues down and traditional dollar access shrinking, the government has quietly turned to cryptocurrencies—specifically, dollar-pegged stablecoins—to keep some level of foreign exchange flowing.
Dollar Shortages Push Businesses Toward Crypto
For years, companies in Venezuela relied on the central bank to supply dollars from oil exports. That system worked, more or less, until sanctions tightened. Now, even with Chevron recently allowed to ship oil again, payments aren’t going directly to the government. That means fewer dollars in the official market.
Private estimates suggest the central bank supplied about $2 billion to the currency market in the first seven months of this year. That’s 14% less than the same period last year. Lawmaker Orlando Camacho, who’s linked to medium-sized businesses aligned with the government, put it simply: there’s always a limit. When dollars are scarce, people look for alternatives.
USDT Steps Into the Gap
Since around June, the government has permitted private businesses to buy USDT—Tether’s stablecoin—using bolívars. Companies need an approved digital wallet, and the crypto can then be used to pay international suppliers or resold privately.
It’s not a huge market yet, but it’s growing. One Caracas-based analysis firm, Ecoanalítica, estimated that businesses bought around $119 million in cryptocurrency just in July. As one businessperson was quoted saying—when one door closes, another opens. Even Vice-President Delcy Rodríguez has hinted at what she called “non-traditional mechanisms” in recent meetings, though she didn’t name crypto directly.
From the Petro to Tether: A Rocky Road With Crypto
This isn’t Venezuela’s first attempt at using digital currency. Remember the petro? Launched back in 2018 with lots of government hype, it was supposed to be backed by oil. It didn’t take off. This time, things are different. The state isn’t pushing its own coin. Instead, it’s tolerating a global stablecoin that’s already widely used.
Reports say crypto usage jumped over 100% in Venezuela in the past year. Still, it’s not without complications. Tether has faced questions about how it operates in places under U.S. sanctions. The company says it follows Treasury rules, but it hasn’t commented specifically on Venezuela.
For now, though, this looks like a practical workaround. Letting businesses use USDT helps them keep importing goods—from food to machinery—while the government holds on to its physical dollars for other needs. It’s not a perfect solution, but sometimes imperfect is all you’ve got.
