Venezuelans increase crypto use as bolívar loses value

The bolívar lost over 70 percent of its value since October 2024 after the government stopped defending the exchange rate. Inflation reached 229 percent in May 2025. Economist Aarón Olmos said hyperinflation, low wages, and limited access to foreign currency drive crypto usage in the country.

Citizens now use stablecoins in retail shops while students study blockchain at universities. Retail merchants accept cryptocurrency payments alongside bolívar transactions using point-of-sale systems that support both traditional payments and digital asset transfers.

Cryptocurrency has become popular for international money transfers. Crypto remittances totaled $461 million of the $5.4 billion sent to Venezuela in 2023. Families choose stablecoins for faster settlement compared to services like Western Union, which charge high fees for transfers to Venezuela.

Cryptocurrency exchanges allow users to convert bolívars to stablecoins tied to the U.S. dollar. The digital tokens maintain stable value unlike the depreciating national currency. Traditional banking services face limitations due to currency restrictions and economic instability.

Several challenges limit broader adoption. U.S. sanctions have led Binance to restrict services connected to sanctioned Venezuelan banks. Internet outages and limited infrastructure slow adoption in some areas of the country.

The government’s approach to cryptocurrency remains uncertain. The petro token program failed to gain widespread use, and Venezuela shut down its cryptocurrency regulator in 2023 amid corruption scandals involving officials. No new cryptocurrency regulations have been announced since then.