“Binance Dollar” Replaces Venezuela’s Bolívar as Inflation Soars
In Venezuela, where inflation has reached 229%, many people no longer use the national currency, the bolívar, for daily life. Instead, they are turning to stablecoins, especially Tether (USDT), which locals often call the “Binance dollar.”
Today, Venezuelans use USDT for almost everything — buying groceries, paying apartment fees, paying salaries, and even business transactions.
The bolívar has lost its function as money because of hyperinflation, strict government controls, and unstable exchange rates. People and businesses now prefer pricing and paying in US dollars, with USDT being the easiest and most reliable option.
Currently, Venezuela has three exchange rates for the US dollar:
- Central Bank (BCV): 151.57 bolívars per USD
- Parallel market: 231.76 bolívars per USD
- Binance USDT rate: 219.62 bolívars per USD
Most people and vendors use the Binance USDT rate because it is more liquid and practical.
According to Chainalysis’ 2025 Global Crypto Adoption Index, Venezuela ranks #18 in global crypto adoption and #9 in usage per population. Nearly half (47%) of small crypto transactions under $10,000 in 2024 were made using stablecoins.
Even small neighborhood shops, medium businesses, and service providers now prefer stablecoins over cash. Meanwhile, state-controlled companies still follow the official BCV rate.
Government-imposed capital controls have made things worse. Official dollars are given to regime-connected firms, which then resell them at higher rates. Because of this, people avoid using bolívars and quickly convert them into USDT or physical dollars when possible.
This trend is not unique to Venezuela. Countries like Argentina, Turkey, and Nigeria also see people turning to crypto and stablecoins as their local currencies weaken. Even Venezuelan banks and oil companies are slowly adopting USDT for transactions to avoid sanctions and restrictions.
