USDT from Tether is prominent in this market.
News summary
Cryptocurrencies, especially USDT, are becoming essential in the Venezuelan economy.
P2P trading dominates the market and facilitates the circumvention of sanctions.
The report highlights regulatory fragility and the advancement of informal usage.
A new survey from TRM Labs reinforces that the adoption of cryptocurrencies has increased in Venezuela, highlighting the central role of stablecoins in the daily lives of the population.
The study points out that years of economic isolation have created an environment in which digital tools have become the main alternative for payments, savings, and international transactions.
The report also details how this dynamic can help the State bypass restrictions imposed by the USA. Furthermore, the TRM emphasizes that this movement reflects both a humanitarian need and a geopolitical risk.
P2P trading dominates the local market
Peer-to-peer platforms have come to occupy a prominent space and have consolidated as essential infrastructure for the Venezuelan economy, circumventing local restrictions.
USDT from Tether stands out in this market, while new cryptocurrencies are sidelined in favor of stability.
A single P2P trading site accounted for 38% of internet traffic coming from Venezuelan IPs. These platforms often operate with minimal KYC requirements, facilitating movement outside the banking system.
High-speed cross-border flows of stablecoins, distributed across multiple blockchains, create ideal conditions for evading sanctions. Therefore, these practices raise concerns among international bodies monitoring the use of crypto assets in sanctioned regimes. Russia is experiencing a similar phenomenon, but in this case, the focus is on foreign trade.
The study by TRM Labs notes that hybrid platforms linking the domestic banking system to offshore liquidity further fuel the cryptocurrency ecosystem in Venezuela.
Regulatory crisis drives cryptocurrencies in Venezuela
Venezuela has SUNACRIP as the regulatory body for the crypto sector. However, the entity has been facing a series of scandals and restructurings. Its weakening contributes to the expansion of informal markets.
For example, the country has already tried to promote the Petro as a national alternative backed by oil. However, the token, involved in political controversies, was discontinued in 2024 after years of low adoption and distrust.
It is also significant that the country is experiencing a moment of tension in its relations with the USA. After all, the North American country recently seized a sanctioned oil tanker, exacerbating the geopolitical impasse.
Thus, the use of cryptocurrencies in Venezuela arises as an improvised response to this scenario. Finally, the TRM Labs report indicates that this phenomenon will gain strength as long as the country remains isolated.
