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▲ Venezuela, Tether (USDT)/ChatGPT generated image
Cryptocurrency research institution TRM Labs analyzed that Venezuela's adoption of virtual assets has been restructured to focus on stablecoins for survival rather than for speculative purposes.
On April 27 (local time), Bitcoin.com, citing TRM Labs' research results, reported that Venezuela ranked 17th in global virtual asset adoption with a volume of $17.9 billion. This adoption is not merely an investment aiming for price increases. It is the result of a surge in the use of stablecoins as a real-life payment method. Venezuela's virtual asset activity shows a unique pattern, moving in line with domestic economic and political situations, regardless of market cycles.
The key asset dominating Venezuela's economy is Tether (USDT). Amid extreme inflation and capital controls, Venezuelans have chosen Tether, which is pegged to the value of the dollar, instead of their own currency, the bolivar, whose value has plummeted. TRM Labs explained, "In environments with high inflation and severe capital constraints, retail use is dominated by dollar-based assets." In fact, approximately 38% of major virtual asset platform traffic originates from Venezuela.
US economic sanctions also acted as a catalyst, skyrocketing the demand for stablecoins. The Venezuelan government and private sector are actively using Tether to circumvent international payment network blockades. Recently, the trading volume of Euro-based stablecoins has also surged by more than 12 times, indicating a move to reduce dependence on the dollar. Euro-based assets are rapidly expanding their influence, recording a monthly trading volume of $777 million.
Venezuelan citizens use Tether to send and receive remittances, purchase goods in stores, and even receive salaries. As the traditional banking system has collapsed, peer-to-peer transactions have effectively replaced the role of a financial system. TRM Labs analyzed that Venezuela's transformation is an example of how stablecoins become a core payment method in situations of economic stress.
Virtual assets have now become an essential tool for survival in Venezuela. Stablecoins are no longer just digital assets; they function as a parallel financial system replacing a failing fiat currency system. As Venezuela's economic uncertainty continues, the adoption of dollar and Euro-based stablecoins is accelerating further.
*Disclaimer: This article is for informational purposes only and is not responsible for investment losses based on it. The content should be interpreted solely for informational purposes.*
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