80% of oil income settled in stablecoins, Venezuela makes USDT its second currency

By: blockbeats|2026/01/13 13:00:01
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Original Article Title: Maduro's Crypto-Backed Oil Deals Put Tether at Center of Venezuela Money Drama
Original Article Author: Vicky Ge Huang, the Wall Street Journal
Translation: Peggy, BlockBeats

Editor's Note: From being called the "outlaw's stablecoin" to attempting to enter the U.S. compliant market, USDT's role in Venezuela reveals the most authentic and contradictory aspect of stablecoins: it serves as both a tool for bypassing sanctions and the traditional banking system for oil exports, and as a financial lifeline for ordinary people to sustain their livelihoods amid the collapse of the Bolivar and capital controls.

When nearly 80% of a country's oil revenue is taken over by a stablecoin and even the elderly have to use USDT to pay property fees, this is not only an extreme example of crypto penetrating the real economy but also a reminder that the core controversy of stablecoins has never been just about how "useful" they are, but about their inherent "dual use": becoming a lifeline where systems fail and an escape route in regulatory vacuums.

The following is the original article:

80% of oil income settled in stablecoins, Venezuela makes USDT its second currency

Nicolás Maduro to some extent facilitated USDT becoming the world's dominant stablecoin. Now, as this former Venezuelan leader sits in a Brooklyn prison, the cryptocurrency's central role in the Venezuelan economy once again draws external scrutiny.

For Venezuela's state-owned oil company, USDT has become a key tool for circumventing sanctions and is used as the payment currency for settling oil trades. Meanwhile, amid the continuous devaluation of the national currency, the Bolivar, Tether has provided an essential financial "lifeline" for ordinary Venezuelans. Like most mainstream stablecoins, USDT is pegged 1:1 to the U.S. dollar.

According to crypto industry analysts, Maduro's arrest and removal from the Venezuelan presidency may not necessarily weaken USDT's presence locally—after all, hyperinflation remains a long-standing challenge. At the same time, Tether's financial ties to Venezuela also position the cryptocurrency company in a crucial spot: as U.S. authorities seek to trace the funds allegedly stolen by the Maduro regime, Tether could become a significant aid.

Adam Zarazinski, CEO of crypto intelligence firm Inca Digital, stated: "The use of cryptocurrency in Venezuela will continue and is likely to expand in the short term. For ordinary users, it serves as a self-remedy mechanism to cope with economic collapse and institutional breakdown. However, the same governance failure also provides space for sanction evasion—if governance does not show credible improvement, this outcome will not change."

Maduro appeared in a preliminary hearing in a US federal court last week on drug trafficking charges and pleaded not guilty.

As a new era dawns, cryptocurrency company Tether and its token (once stigmatized as the "outlaw's preferred stablecoin") are seeking acceptance in the US market. Last year, legislation was passed paving the way for wider adoption of stablecoins, and Tether has announced plans to launch a stablecoin open to US investors. If successful, this would put it on par with competitors like Circle Internet Group and Paxos. Otherwise, Tether is likely to be marginalized in the US market.

Just last week, US Energy Secretary Chris Wright stated that the US will indefinitely sell blocked Venezuelan oil. He said the proceeds from the sales will be deposited into an account controlled by the US government and eventually transferred to benefit the Venezuelan people. A senior Trump administration official also told The Wall Street Journal that the government is selectively lifting some sanctions to enable the transportation and sale of crude oil and oil products to the global market.

Facing escalating US sanctions in 2020, the Venezuelan state-owned oil company, Petróleos de Venezuela (PdVSA), has begun demanding payment in USDT to bypass the traditional banking system. Oil export revenues are either settled by transferring USDT directly to a wallet address or by intermediaries converting cash receipts into USDT.

This shift represents a "transformative change" for the country's oil economy. Venezuelan economist Asdrúbal Oliveros recently stated on a podcast that an estimate shows nearly 80% of Venezuela's oil revenue is received in the form of stablecoins such as USDT.

Subsequently, Tether collaborated with US authorities to freeze dozens of wallets identified as being linked to Venezuelan oil trading. A Tether spokesperson did not respond to a request for comment.

Shortly after the sanctions took effect, Tether, with the trading code USDT, also became a viable alternative currency for many Venezuelans. They use this stablecoin for cross-border remittances, value preservation, and daily transactions.

Tether CEO Paolo Ardoino stated at a recent cryptocurrency industry conference: "In the past 10 years, the Venezuelan bolívar has devalued by 99.8% against the US dollar, the Turkish lira by 80%, and the Argentine peso by approximately 94.5%. With just this simple chart, it is enough to explain why USDT has succeeded."

Born and raised in Venezuela, crypto entrepreneur Mauricio Di Bartolomeo said that two months ago, his 71-year-old aunt called him because she needed to buy some USDT to pay the condo association fee.

“You pay the gardener, you pay the barber, all like that. Basically, USDT you can use for everything,” said Di Bartolomeo, co-founder of the crypto lending platform Ledn. “Stablecoins have penetrated so deeply in Venezuela that even without regulated compliant channels to buy and sell stablecoins, people continue to choose stablecoins over using the local banking system.”

Researchers say that USDT playing a crucial role in Venezuela is almost inevitable due to the population's lack of trust in the domestic banking system and strict capital controls limiting their avenues to physical USD. A typical example is when the Venezuelan government tried to launch a crypto-backed by oil called Petro in 2018 but failed due to lack of public trust and international recognition.

Ari Redbord, Global Head of Policy at blockchain analytics firm TRM Labs, stated: “The issue is not with USDT itself but with the inherent ‘dual-use’ reality of stablecoins.” TRM Labs has partnered with Tether to track the illicit use of stablecoins on the Tron blockchain. “They can be a lifeline for ordinary people and also potentially leveraged as a sanctions evasion tool under pressure.”

[Original Article Link]

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