Dollar-Pegged Cryptocurrencies Gain Traction in Venezuela’s Private Sector
Venezuela is gradually allowing the use of dollar-pegged cryptocurrencies, mainly USDT (Tether), in private-sector currency exchanges to cope with reduced foreign currency due to U.S. sanctions on oil exports. Businesses with approved digital wallets can buy crypto with bolivars and use it for domestic or international payments. State-run PDVSA has increased USDT usage, and analysts estimate $119 million in crypto was sold to the private sector in July. The central bank injected around $2 billion into the exchange market in the first seven months, 14% less than last year, and further restrictions on oil payments may tighten dollar availability.