Venezuela records rise in stablecoin usage amid economic instability

Venezuela has continued to see a rise in stablecoin adoption and usage as the country’s economic instability continues to worsen. The country has been relying on blockchain technology amid a decade of economic pressures, caused by political tensions and other external factors.

As a result, blockchain intelligence firm TRM Labs has predicted that stablecoin usage will continue to grow if conditions in the South American country continue to worsen. TRM Labs noted in a report that as regional and geopolitical tensions, which have been worsened by the US-Venezuela tensions, continue, people would have no other choice but to continue adopting digital assets.

Venezuela set to see rise in stablecoin usage

Over the past months, Venezuela has become increasingly dependent on US-dollar pegged stablecoins even in the face of the threat of war, sanctions, and the hyperinflation of its currency, the bolívar. The country’s back-and-forth with the United States hit a critical point when the latter announced plans to conduct military strikes targeting drug cartels in the country. Trump has accused the cartel of smuggling illicit substances into the US, a claim that has been denied by Venezuelan President Nicolás Maduro.

In its report, TRM Labs mentioned that the situation in Venezuela has now worsened, causing macroeconomic instability, which has led to the continued devaluation of the bolívar. At the same time, other factors, including regulatory challenges, reduced trust in traditional banking infrastructure, the uncertainty surrounding its crypto regulator, SUNACRIP, and its enforcement capacity, could prolong the population’s dependence on stablecoins, driving more usage.

“Absent a material shift in Venezuela’s macroeconomic conditions or the emergence of cohesive regulatory oversight, the role of digital assets — particularly stablecoins — is poised to expand,” the report said. According to the recent Chainalysis 2025 Crypto Adoption Index report, Venezuela is currently 18th globally in terms of crypto adoption. However, the country’s rank increased to 9th when the metric is adjusted to account for population size.

Peer-to-peer transactions go mainstream

According to TRM Labs, peer-to-peer (P2P) transactions, which are transfers made from one person to another person without the need for an intermediary, and USDT-to-fiat conversions, have emerged as key services that Venezuelans have been using in the absence of reliable domestic banking channels. The blockchain intelligence firm noted that it tracked several Venezuelan IP addresses and discovered that more than 38% were visits to websites offering P2P services.

TRM Labs mentioned that the platform underscores its role in facilitating crypto access in the low-banking environment that has opened up in Venezuela due to the economic instability. “A significant share of crypto-to-fiat activity is facilitated through platforms supporting informal settlement rails — even amid reports of intermittent service disruptions,” TRM Labs said. “Local platforms also play a key role, particularly those offering mobile wallets and bank integrations suited to domestic users.”

Venezuela’s crypto ecosystem was born out of nearly a decade of economic collapse, international sanctions pressure, and state experimentation with digital financial alternatives, the TRM Labs team added. Stablecoins, especially USDT, have been playing an important role in household and commercial transactions in the country. Despite sanctions evasion concerns, citizens continue to adopt stablecoins due to necessity rather than speculation or criminal intent.

“For most Venezuelans, stablecoins now operate as a substitute for retail banking — facilitating payroll, family remittances, vendor payments, and cross-border purchases in the absence of consistent domestic financial services.” Businesses now accept crypto through platforms like Binance and Airtm. In addition, some employees are being paid in stablecoins, while universities have begun offering courses dedicated to digital assets.

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