Venezuela's Oil Industry Abandons Bolívar for Tether

Venezuela's oil industry is increasingly relying on a surprising financial partner: Tether (USDT), a stablecoin pegged to the US dollar. In June and July, USDT trading volume in Venezuela reached approximately 75% of monthly oil exports, according to recent data. This trend is significant because it shows how the country has developed a parallel financial system.

The use of USDT is not new to Venezuela's oil industry; PDVSA, the state-owned oil company, began requiring prepayments in Tether as early as 2023-2024. By Q1 2024, many deals demanded half the cargo value upfront in USDT. This shift was likely driven by the need for a stable store of value, given Venezuela's hyperinflationary bolívar.

As economist Asdrúbal Oliveros pointed out, an estimated 80% of Venezuela's oil revenue is expected to be settled in USDT by late 2025 or early 2026. This has significant implications for the broader crypto market, as it validates the role of stablecoins in real commerce and commodity settlement.