tech

January 19, 2026

Venezuela shows how locals turn to Tether-issued USDT stablecoin as governments wobble

Locals in Venezuela, as well as others living under unstable regimes, are turning to USDT as protection from political and economic uncertainties.

Venezuela shows how locals turn to Tether-issued USDT stablecoin as governments wobble

TL;DR

  • Venezuelans are converting bolívares to USDT amidst U.S. military intervention to protect their savings.
  • Stablecoins like USDT are being used globally to hide wealth from authoritarian regimes and combat hyperinflation.
  • The demand for USDT surged during the U.S. attack on Venezuela, causing its price to increase on peer-to-peer exchanges.
  • While stablecoins are designed to be dollar-pegged, their prices can become unstable due to high demand.
  • The use of stablecoins can lead to high capital outflows, potentially causing local currency depreciation.
  • Stablecoins are seen as a necessary 'escape valve' and a better alternative to governments stealing citizens' money.

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