From Corner Shops to Large Retailers Cryptocurrencies are becoming a core pillar of Venezuela’s economy as citizens shield themselves from a collapsing bolívar and strict government controls. From small family stores to major retail chains, shops across the country now accept crypto via platforms like Binance and Airtm. Some businesses even pay salaries in stablecoins, while universities have introduced digital asset courses. “There’s lots of places accepting it now,” said shopper Victor Sousa, who paid for phone accessories with USDt. “The plan is to one day have my savings in crypto.” According to the Chainalysis 2024 Crypto Adoption Index, Venezuela ranked 13th worldwide, with usage rising by 110% in a year. Bolívar’s Collapse Fuels Demand for Crypto The bolívar’s sharp decline is accelerating crypto adoption. Since October, when the government stopped defending the currency, the bolívar has lost over 70% of its value. Inflation reached 229% in May, according to the Venezuelan Finance Observatory (OVF). “Venezuelans started using cryptocurrencies out of necessity,” economist Aarón Olmos explained. Low wages, inflation, foreign currency shortages and limited banking access have made digital assets a survival tool. Still, barriers remain. US sanctions restrict Binance’s services connected to certain banks and individuals, while poor internet connectivity complicates daily use. Despite these hurdles, experts told the Financial Times that Venezuela’s crypto ecosystem remains resilient. Government’s Uncertain Crypto Policy Venezuela’s government has struggled to set a clear crypto policy. The state-backed digital currency, the petro, launched in 2018, collapsed in 2024. The national exchange regulator was shut down in 2023 after corruption scandals tied to oil-linked transactions. This inconsistency has left private platforms and grassroots adoption to drive most of the country’s digital asset growth. Crypto Remittances: A Lifeline for Families Remittances sent home in crypto have surged as traditional services prove costly and slow. In 2023, digital assets accounted for 9% of Venezuela’s $5.4 billion in remittances — about $461 million. For families, cryptocurrencies offer faster transfers, fewer fees, and better protection from shortages of US dollars. Rising Tensions with the United States Crypto’s rise comes as Venezuela faces mounting military and political pressure from Washington. Venezuela’s defense minister recently announced new naval and drone patrols in the Caribbean after the US deployed warships, including a missile cruiser and a nuclear-powered submarine. The escalation follows long-standing US accusations of President Nicolás Maduro’s ties to drug cartels, with Washington doubling the reward for his capture to $50 million.
