The difference between the "Binance dollar" and the "Central Bank dollar" boils down to two fundamentally different exchange rates:
1. Central Bank Dollar (Official Rate)
What is it? It is the official and regulated exchange rate set by the Central Bank (BC) of a country (like the BCV in Venezuela, for example).
What does it reflect? It reflects the official rate used by large institutions, banks, and often for government transactions. It is the price that the government sets or approves for foreign currency.
Context: In countries with high inflation or strict capital controls (like Venezuela), this official rate is often subsidized or controlled, and does not reflect the reality of the supply and demand for dollars on the street.
2. Binance Dollar (P2P Rate/Real Market)
What is it? It refers to the price of USDT (Tether), a stable cryptocurrency designed to be pegged to the US dollar ($1 USDT ≈ $1 USD), when exchanged on P2P (Peer-to-Peer) market platforms like Binance.
What does it reflect? It reflects the "real street price" or the free market price. This price is determined by the direct supply and demand between users.
A user in the P2P market is willing to pay (or receive) a certain amount of local currency (e.g. bolívares) for a USDT/USD, and this price includes factors such as:
The real demand of the population to protect their savings from inflation.
The ease and speed of the transaction (direct deposit to local bank accounts).
The country's risk premium.
Context: In countries with economic instability, the "Binance dollar" (or any P2P price of USDT) tends to be significantly higher than the official rate of the Central Bank because it is the price that people actually pay to have access to a stable reserve currency (the digital dollar), which is perceived as safer and more readily available than the bolívar or the official dollar.
