Cryptocurrencies have become essential to Venezuela's economy, study says

Source: PortaldoBitcoin Original Title: Cryptocurrencies Have Become Essential to Venezuela’s Economy, Study Finds Original Link: A new study suggests that Venezuela has become increasingly dependent on cryptocurrencies as international economic pressures on the country intensify.

Nearly a decade of economic isolation, aggressive international sanctions, and economic collapse have made cryptocurrencies — particularly Tether’s USDT stablecoin — essential to the daily lives of Venezuelans, according to a new report.

The report also highlights how Venezuela’s largely unregulated crypto economy has potentially helped, or could help, the country circumvent international sanctions.

“It can be confidently stated that years of sanctions and the loss of corresponding banking services have contributed to pushing both the state and the economy in general toward alternative means,” said a former U.S. Treasury official.

The expert characterized the impact of digital assets on the Venezuelan economy as a double-edged sword. He stated that the humanitarian impact of cryptocurrencies on a population without stable financial alternatives should be supported, but that ways to restrict the value of cryptocurrencies in the country “as a tool to bypass sanctions” should also be explored.

Informal Trading in Venezuela

The report highlighted the popularity in Venezuela of informal peer-to-peer cryptocurrency trading platforms (P2P), which have minimal KYC (Know Your Customer) measures and generally operate outside the banking system.

The research found that a single site offering peer-to-peer cryptocurrency trading was recently responsible for 38% of all web traffic originating from Venezuelan IP addresses.

Informal P2P cryptocurrency trading, when combined with other variables such as hybrid platforms situated between the national banking system and offshore liquidity — as well as cross-border flows of high-speed stablecoins routed through multiple blockchains — can often prove to be a perfect recipe for sanctions evasion.

Venezuela has a specific regulatory body for cryptocurrencies, SUNACRIP. However, the agency has faced corruption scandals and restructuring processes that weakened its control over the country’s digital asset economy.

Blockchain Adoption History

The country was one of the first to adopt blockchain technology. In 2018, Venezuela launched the Petro, a token backed by the country’s oil and mineral reserves, aimed at being a more stable national currency than the bolívar, which was in free fall.

But, after years of controversy, the token was discontinued in 2024.

Escalation of Tensions

In recent months, economic and political deadlocks have intensified drastically, with increasing international pressures on the country. Recently, the U.S. government seized a tanker subject to sanctions off the coast of Venezuela, marking an escalation of tensions.