Venezuelan Government Implements Policy to Boost USDT Usage Amid Dollar Shortage

The Venezuelan government has implemented a policy since June allowing increased use of Tether for currency exchanges in the private sector. This move addresses severe dollar shortages due to US sanctions on oil exports.

Key facts include:

Companies are exchanging local bolívars for dollars, primarily generated through oil and foreign card transactions.
Oil revenue has decreased significantly; recent licenses for Chevron limit payments to the government.
A limited number of banks now facilitate USDT purchases for businesses in exchange for bolívars, requiring companies to maintain digital wallets.
Businesses can sell USDT or use it for domestic and international payments, aiding economic operations.
Cryptocurrency transactions reached $119 million in July, representing a notable portion of the central bank's $2 billion market injection.
State-owned PDVSA is increasing its use of USDT to bypass traditional banking systems impacted by sanctions.
Since 2019, Venezuela has sought to utilize cryptocurrency to circumvent international sanctions.
The 2024 Chainalysis Crypto Adoption Index ranked Venezuela 13th globally, indicating a 110% increase in adoption.