What about the dollars exchanged for Binance?, asks a young Venezuelan when asked about the digital currency USDT. Although the concept may not be clear to all citizens, this currency has become popular in Venezuela due to the scarcity and high demand for foreign currency, combined with the need to safeguard the value of bolívares.
Although most Venezuelans associate USDT with the Binance platform, this digital currency is available on various cryptocurrency exchange platforms, with Crixto App and Kontigo being the two authorized by the Superintendence of Crypto Assets (Sunacrip), as explained to El Pitazo by economist and professor at the Institute of Higher Studies in Administration (IESA) Aarón Olmos.
According to the expert, a USDT is a stable digital token created 11 years ago on a blockchain by the company Tether, currently headquartered in El Salvador.
USDT is an alternative to the use of physical dollars, traded one-to-one, meaning one USDT is equivalent to one dollar. According to Olmos, this digital currency operates 'under a collateral system,' which means that if there are 100 million USDT, it is because there are 100 million dollars in some bank account or 100 million dollars equivalent between money and investment mechanisms that are validated, verified, and audited by international companies that certify that this token issuance has that backing.
For many Venezuelans, USDT has become an alternative to the dollar that cannot be found through traditional means, precisely due to the high demand and low supply, the expert explained.
A large number of individuals, both natural and legal persons, seeking foreign currency and unable to find it turn to platforms or exchanges where they can buy USDT with bolívares and thus pay their suppliers, safeguard value, make internal payments, or use it as a savings mechanism.