With the current alliance between the United States and Venezuela, several questions arise regarding the economic recovery of Venezuela following the economic collapse left behind by Nicolás Maduro's administration.

Among the many measures now on the table is the issue of dollarization. The Caribbean country had already been experiencing a "de facto dollarization," and this situation has led to the emergence of various rates whose purpose has been to establish a pricing standard to guide commercial operations in the country, as citizens' trust in the Bolívar has eroded over time. Recently, Venezuelan citizens have begun entrusting their money to stablecoins such as USDT and USDC to conduct transactions and protect (save) their money from the rampant inflation affecting the country.

With the unexpected turn that has arisen following the capture of Nicolás Maduro and the willingness expressed by the U.S. government to reactivate the Venezuelan economy, the topic of the official dollarization of the country has been put on the table as a direct attack on inflation. According to an article published by FORBES on January 6, 2026: "Lowering the value of a currency is the very definition of monetary inflation. Therefore, a significant boost for the new Venezuela would be to dollarize the economy; that is, to quickly replace the bolívar, a virtually worthless currency, with the dollar. Two Latin American countries, Ecuador and El Salvador, did precisely that in the early 2000s, and the change has been a popular success in both countries."

Steve Forbes recommends excluding the International Monetary Fund (IMF) because he claims that: "it would be an easy but disastrous measure that could result in a default, as that institution promotes toxic recipes that hinder solid economic growth, including currency devaluations and tax increases. In this context, a weak and persistent economy would end up discrediting a democratic free-market government."

Such a scenario occurred in Argentina. During his campaign for the presidency of Argentina two years ago, Xavier Milei promised to adopt the dollar as the official currency of his country. Unfortunately, like when Eva tasted the apple, Milei could not resist the serpent of the IMF when it slithered into his garden and offered him money in exchange for abandoning his dollarization promise. The result was the damaging and wholly unnecessary peso crisis of last fall, which ended with Milei begging the United States for a multi-billion dollar bailout. Given Argentina's unfortunate history with the peso, this program is doomed to fail, jeopardizing Milei's other radical and brave free-market reforms. Based on this precedent, it would be a bad idea to involve the IMF in the rescue plan for the Venezuelan economy, and another reason would be the vast amount of wealth that this country possesses, which can be recovered only under strict management.

In addition to this, Venezuela should also implement a simple and low-rate income tax system, similar to that of Singapore, or even a flat tax, as done in Estonia and Bulgaria. The combination of an ultra-low tax regime and the U.S. dollar as the official currency would quickly turn Caracas into a magnet for regional and global capital. This would stimulate a powerful national boom, generating wealth from a much broader base than that of Venezuelan oil fields.

Another measure to generate confidence would be for the new government to radically simplify the process to start a legal business. This would eliminate all licenses and fees that plague startups and are sources of corruption. New Zealand and Denmark are real examples of how to achieve this.

Likewise, the creation of a wealth fund would be beneficial, in which a certain amount of oil and gas revenues would be deposited annually for management as a mutual fund. After a period that allows for asset growth, annual dividends could be instituted and distributed to all individuals. In this way, each citizen would have a personal stake in the health of the national oil industry. The state of Alaska has a fund of this type and could serve as a model for Venezuela.

In short, there is a range of possibilities to initiate a rapid recovery with the support of the U.S., and dollarization is one of the measures that has garnered the most attention in recent days. This would imply the elimination of the current exchange rate (official, parallel), and the value of the circulating currency would practically equate its value with the stablecoins currently being used in this country. In this sense, it would not be necessary to save solely in cryptocurrencies of this type since the local currency would be equivalent to its value, which would lead the citizen (who until now only knew USDT and USDC) to diversify their cryptocurrency portfolio to include other tokens of fluctuating price but of higher value like $BTC $ETH . On the other hand, it would greatly increase the citizen's confidence in the new legal tender fiat currency.

Disclaimer

The information presented in this article does not constitute financial advice in any case, so its purpose is entirely informative. If you need to verify the information or learn more about this topic, consult the sources cited in the references.

References

Forbes, S. (January 6, 2026). What should be done to recover democracy and the economy of Venezuela? Retrieved from: https://forbes.co/2026/01/06/actualidad/que-se-debe-hacer-para-recuperar-la-economia-de-venezuela.

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