Sanctions against Venezuela validate the concept of stablecoins

Venezuela, currently under US sanctions, conducts approximately half of its oil revenue (denominated in USD) through cryptocurrency transactions, mainly via Tether’s USDT. USDT has facilitated 80% of oil sales. Stablecoins were once banned, but now they are recognized by the state, with banks distributing USDT to businesses for domestic and international payments. Retailers are also preparing to accept USDT. Interim President Delsi Rodriguez acknowledged that Venezuela is shifting towards “non-traditional” financial mechanisms, which effectively achieve dollarization through digital dollars. Nevertheless, the US indictment against Nicolás Maduro makes no mention of cryptocurrencies, instead listing traditional cash laundering activities. Analysts believe that the limitations of cryptocurrencies in large-scale, rapid asset liquidation hinder their use for large illegal fund flows. Despite this, Venezuela’s adoption of stablecoins actually indicates its recognition of USD-backed stablecoins, reinforcing the dominance of the dollar even in adversarial countries.