"Only coins can be trusted"... Venezuela sees surge in stablecoin trading volumes

With President Nicolás Maduro arrested by the United States, plunging Venezuela’s political landscape into turmoil, expectations are growing that the standing of virtual assets (cryptocurrencies) that underpin the local economy will strengthen.

According to Bloomberg on the 8th (local time), Venezuela’s total cryptocurrency transaction volume last year was tallied at $44.6 billion. This marks a 19% increase from 2022.

The reasons Venezuelans use virtual assets—especially dollar-pegged stablecoins (USDT, USDC)—are clear: deep-seated distrust of the government-controlled banking system and the collapse in the value of the currency.

Michal Moneta, chief operating officer (COO) of the Onchain Foundation, said, “Venezuela is one of the most representative cases where crypto adoption was driven by economic necessity,” adding, “It’s not because the regulatory environment is favorable; coins are the answer people found to survive.”

Some also speculate that the United States could encourage the spread of stablecoins to expand the dollar’s influence in Venezuela.

JP Richardson, CEO of Exodus, said, “You can access global markets by downloading just one app,” adding, “This could be a very convenient way to export dollars.” Mauricio Di Bartolomeo, co-founder of LEDN, emphasized, “Not using stablecoins is like placing your entire wealth under the regime’s surveillance,” adding, “Even if Maduro is gone, this survival instinct won’t change overnight.”