Venezuelans Buy Stablecoin USDT Amid 229% Inflation
- Inflation in Venezuela accelerates use of USDT
- Stablecoins offer protection against devaluation
- USDT consolidates in everyday transactions
The hyperinflation affecting Venezuela, with an annual rate of 229%, is leading more and more citizens to switch to using USDT in their daily transactions, according to Reuters. The bolivar, the country's official currency, has lost so much practical utility that residents have started adopting the stablecoin as an alternative source of stable value amid the economic crisis.
This move highlights not only the impact of the loss of confidence in the local currency, but also the importance of Tether as a mechanism for preserving purchasing power in an economy marked by capital controls and currency devaluation. In unstable markets, the use of dollar-pegged cryptocurrencies has proven to be a way to protect personal and business finances.
Mauricio Di Bartolomeo, co-founder of Ledn, highlighted that USDT has become an element of social and financial balance among Venezuelans. According to him, the stablecoin functions as "a better dollar," helping to equalize access to hard currency in a country with so many economic and financial barriers. "USDT now functions as a better dollar and a financial equalizer between social classes," he stated.
Cryptocurrency experts note that this phenomenon is not limited to Venezuela. Other markets in crisis also tend to adopt stable digital assets as a way to preserve value and ensure liquidity during periods of instability. Coincu Research's analysis suggests that this pattern may repeat itself in nations facing similar turmoil.
In addition to its growing acceptance on the streets and in commerce, USDT maintains its peg to the US dollar. The token continues to trade at $1,00, with a market cap of approximately $168,8 billion. Despite minimal fluctuations of 0,01% in 24 hours, trading volume fell 36,77%, totaling $68,9 billion.
The adoption of stablecoins like USDT in Venezuela reflects a turning point in fragile economies, where the population seeks viable alternatives to escape the devastating effects of runaway inflation. This movement reinforces the relevance of stable cryptocurrencies as tools for real use in the daily lives of populations impacted by prolonged financial crises.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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