How Venezuelans Use Crypto Amid Hyperinflation

When your paycheck buys less than a loaf of bread by the time you get home, money stops being money. In Venezuela, that’s not a metaphor-it’s daily reality. The bolívar has lost over 70% of its value since early 2025. Prices change multiple times a day. Supermarkets print new price tags every morning. People carry stacks of cash just to buy milk. And yet, somehow, life goes on. Not because the government fixed anything. But because millions of Venezuelans turned to something else: crypto.

Crypto Isn’t an Investment-It’s a Lifeline

Forget buying Bitcoin to get rich. In Venezuela, crypto isn’t about speculation. It’s about survival. People use it to pay rent, buy groceries, send money to family, and even pay for medical care. The most common coin isn’t Bitcoin. It’s USDT-Tether. Why? Because it’s pegged to the U.S. dollar. One USDT = one dollar. No inflation. No surprise devaluation. It holds its value from the moment you buy it to the moment you spend it.

You’ll hear Venezuelans call it "Binance Dollars." That’s not slang-it’s fact. Most people buy USDT through Binance, the world’s biggest crypto exchange. Even though it’s based overseas, it’s the most trusted platform in Caracas. Street vendors, taxi drivers, and university cafeterias now list prices in USDT. Receipts show totals in "Binance dollars" because the bolívar is too unstable to use.

How Do You Even Start?

You don’t need a bank account. You don’t need paperwork. You just need a smartphone and a Wi-Fi connection. Most Venezuelans use mobile apps-Binance, LocalBitcoins, or Paxful-to buy crypto with cash. They meet strangers in parks or cafes to exchange bolívares for USDT. It’s risky, but safer than trusting the bank. Some use prepaid cards or gift cards as middlemen. Others trade through WhatsApp groups or Telegram channels where neighbors coordinate trades.

The learning curve is short. Most people figure out how to send and receive crypto in two to three weeks. You don’t need to understand blockchain. You just need to know how to scan a QR code and enter a password. Security is still a problem-people lose keys, fall for scams, or get robbed. But the risk of holding bolívares is worse.

Who’s Using It? Everyone

It’s not just tech-savvy youth. Grandparents use it. Street vendors use it. Doctors use it. Even public schools in Caracas accept crypto payments for school supplies. A 2025 report showed $119 million in crypto transactions in Venezuela just for July. That’s not a drop in the ocean-it’s a flood.

Remittances from Venezuelans abroad have exploded. In 2023, about 9% of the $5.4 billion sent home came through crypto. Why? Because traditional wire services like Western Union charge too much, take too long, or block transfers entirely. Crypto skips the middlemen. A cousin in Miami sends $100 in USDT. It arrives in minutes. The recipient cashes out at a local exchange point. No forms. No delays. No fees that eat half the money.

The Black Market Is Now a Blockchain

Venezuela has three exchange rates running at once:

• The official rate set by the Central Bank (useless)
• The "dólar negro" black market rate (unreliable)
• The USDT peer-to-peer rate (what people actually use)

Merchants don’t care about the government’s numbers. They price their goods in USDT. A kilo of chicken? 2.5 USDT. A bus ticket? 0.8 USDT. That’s it. The bolívar is just a number on the screen-something you convert from before you pay.

This shift isn’t happening because the government approved it. It’s happening because the people made it happen. The state tried to force a solution: the Petro, a government-backed crypto launched in 2018. It failed. People didn’t trust it. It was slow. It was controlled. It didn’t work. So they ignored it and built their own system.

What Keeps People From Quitting?

Power outages. Bad internet. Phones that die. These aren’t inconveniences-they’re daily battles. A user might wait 45 minutes for a transaction to confirm because the network is slow. They charge their phone at a neighbor’s house because their own power keeps cutting out. They carry spare batteries. They memorize wallet addresses because they can’t risk losing a link.

But they keep going. Why? Because the alternative is worse. If you get paid in bolívares on Monday, by Friday your salary buys half as much. With crypto, your money doesn’t shrink. You know exactly what you have. You can plan. You can save. You can feed your family.

It’s Not Perfect-But It’s the Only Option

There are risks. The government occasionally shuts down crypto exchanges or cracks down on mining. U.S. sanctions make it harder to move money in and out. Stablecoins like USDT are controlled by a company in the U.S.-what if they freeze accounts? What if they stop supporting Venezuela?

No one knows. But right now, there’s no backup. Banks are unreliable. The state won’t fix the economy. The world ignores the crisis. Crypto isn’t a cure. It’s a bandage. But it’s the only one that works.

The Future? It’s Already Here

This isn’t a trend. It’s a transformation. Venezuela is the first country where crypto became the default currency-not because of policy, but because of collapse. Other nations watch. Brazil is adopting crypto through banks and stock exchanges. Venezuela is doing it in alleyways, on sidewalks, through WhatsApp.

Even if the government changes tomorrow, it won’t matter. The trust in the bolívar is gone. People won’t go back. They’ve seen what happens when you rely on a currency that evaporates. They’ve seen what happens when you hold something that doesn’t.

Crypto in Venezuela isn’t about technology. It’s about dignity. It’s about being able to buy food without watching your money disappear. It’s about sending money to your mother without losing half to fees. It’s about having control over your own life when the system has failed you.

And that’s why, despite everything, Venezuelans keep using it. Not because they love crypto. But because they have no other choice.