Venezuela is experiencing sanctions and hyperinflation after former president Nicolás Maduro was arrested on January 3, 2026, during a military operation and transported to the U.S. But even under these conditions, USDT Tether continues to support oil trade and everyday payments in the South American country.
The main oil company in Venezuela decided to use USDT for oil sales to avoid the problems of a failed banking system. Analysts and economists stated that the state-run oil company in Venezuela utilized USDT for oil transactions and to circumvent the traditional banking system, which is currently experiencing numerous issues.
Venezuela used USDT to pay for oil sales after sanctions blocked normal banking routes
In 2020, the U.S. imposed strong sanctions on Venezuela that led to the decline of the banking system and pushed many foreign banks out of the country.
The state-owned oil company Petróleos de Venezuela began using USDT to enable buyers to transfer USDT from one digital wallet to another. Some of them even set up special addresses for oil sales, while others used exchange agents. This new payment system allowed oil shipments to continue even when normal payment paths remained closed.
Eighty out of every 100 dollars the country received from oil came through digital currencies. Because the payments are recorded on a public ledger, it’s easier to track transactions and maintain accurate records.
However, U.S. officials began tracking the payments and even partnered with Tether to freeze many digital wallets linked to these oil payments due to irregularities. Some analysts claim that investigators used these records to track funds that the Maduro government had moved illegally.
This didn’t stop people and businesses in Venezuela, though, because they continued using USDT to sell oil, move money, and survive the harsh conditions brought about by heavy sanctions and long-term economic problems.
Venezuelans started using USDT every day because their local money kept losing value
The prices of food, transportation, and essential services continued to increase daily. At the same time, the country’s national currency, the bolivar, lost nearly all of its purchasing power over a period of more than ten years. People would work but still struggle to afford food and healthcare because inflation increased, while their wages remained the same.
People started losing their life savings within a very short period due to the high prices, so they began to lose trust in the bolivar and started looking for a stable alternative.
Since USDT remained close to the value of the dollar, ordinary people began using the stablecoin to protect their small savings. USDT also made it easier for people to send and receive money across borders, which was appreciated by citizens who often relied on financial support from their families abroad. Over time, more people began using USDT for everyday transactions, not just to save money, which gave them more control in a very unstable economy.
People now use tether to pay for their rent, haircuts, cleaning, gardening, and home repairs, just like they would with the bolivar. Shop owners and service workers even started accepting USDT as payment because it felt safer than their national currency.
There were no clear rules, strong laws, or official cryptocurrency exchanges in the country at the time, but people worked together and educated each other on how to use digital wallets on their phones. These communities in Venezuela took in stablecoins not because they love technology, but because they needed a way to survive a broken financial system.
Other problems, such as strict capital controls, also made it difficult for individuals to obtain physical cash and limited bank withdrawals, forcing people to use USDT as an alternative. The Venezuelan government even attempted to launch its own oil-backed digital currency, called Petro, but it failed because citizens did not trust government-backed money.
Analysts are now saying stablecoins are the only thing keeping struggling families alive in the country because they allow money to move outside normal controls.
The smartest crypto minds already read our newsletter. Want in? Join them.
Source: https://www.cryptopolitan.com/tethers-usdt-in-focus-after-maduros-arrest/
