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

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.”
You may also like

Potential Bitcoin Crash Below $60K May Delay Recovery to 2027
Key Takeaways: Bitcoin’s deep drawdown phase may extend recovery to the second quarter of 2027. Historical data shows…

BTC USD Price Drops Below $67K Amid Rising Treasury Yields
Key Takeaways: BTC USD slumped to $66,300, its first drop below $67K since March 9, driven by macroeconomic…

Second Bill Targets Insider Trading in Prediction Markets
Key Takeaways: The Public Integrity in Financial Prediction Markets Act of 2026 prohibits government officials from using insider…

India Apprehends Key Figure in Myanmar Crypto Fraud Complex
Key Takeaways: India’s Central Bureau of Investigation (CBI) arrested a key player in a scam that trafficked Indian…

Bitcoin and Profit Metrics: Will History Repeat Itself?
Key Takeaways: Historical patterns reveal that when Bitcoin’s supply in profit falls below 50%, significant price rallies ensue.…

Bitcoin ‘Compression’ Outcome Could Propel BTC Towards $80K: An Analyst’s Perspective
Key Takeaways: Bitcoin’s price is testing a critical $71,500 level, hinting at a possible rally to $80,000. Traders…

Data Points to Accelerating Ether Supply Crunch: Will ETH Price Follow?
Key Takeaways: As of now, 33.1% of Ethereum’s circulating supply is staked, resulting in a tighter liquid supply.…

XRP Risk-Reward Improves as Whale Accumulation Surges: Will the Price Mirror This Trend?
Key Takeaways: XRP’s Sharpe Ratio turned positive on March 26, 2026, indicating a potential for returns outweighing associated…

Cryptocurrency Price Predictions for March 27: BTC, ETH, BNB, XRP, SOL, DOGE, HYPE, ADA, BCH, and LINK
Key Takeaways: Bitcoin is struggling to maintain its position above the $66,000 threshold, amplifying concerns of a further…

Bitcoin ETFs Face Capital Outflow as Market Treads with Caution
Key Takeaways: Bitcoin ETFs experienced a $296 million outflow, ending a four-week inflow run. Total net assets for…

Crypto Market Predictions: BTC, ETH, BNB, XRP, SOL, DOGE, HYPE, ADA, BCH, LINK
Key Takeaways: Bitcoin struggles at the $72,000 level as bulls aim for $80,000, while resistance remains strong. Ethereum…

Bitcoin Returns to $71K as Oil Prices Plummet with Trump Halting Iran Strikes
Key Takeaways: Bitcoin rallies 5% to surpass $71,000 following Trump’s delay of US military action against Iran. Liquidations…

Ether Taker Volume Reaches Three-Year Peak: Can ETH Sidestep a 19% Price Drop?
Key Takeaways: An Ether on-chain indicator has surged to its highest in over three years, signaling potential stabilization…

Bitcoin Spot Volumes Reach 2023 Lows While BTC Rallies Stay News-Driven
Key Takeaways: Bitcoin’s price surged to $71,600 during a US market open, but the rise lacked consistent spot…

Unifying Ethereum: Tackling Fragmentation and Embracing Onchain Trading
Key Takeaways: Ethereum developers propose a groundbreaking ‘Economic Zone’ to address fragmentation in layer-2 networks. Onchain commodity trading…

Lummis Affirms CLARITY Act as DeFi’s Strongest Shield Yet
Key Takeaways: The CLARITY Act is touted by Senator Cynthia Lummis as providing unparalleled protections for DeFi developers.…

US Probes Bitmain over Security Concerns Amidst Crypto Mining Dominance
Key Takeaways: US authorities have initiated “Operation Red Sunset” to investigate potential security threats posed by Bitmain’s Chinese-manufactured…

Google and Banks Rally Behind $5 Billion Texas Data Center for Anthropic
Key Takeaways: Google has partnered with a consortium of banks to finance a $5 billion data center in…
Potential Bitcoin Crash Below $60K May Delay Recovery to 2027
Key Takeaways: Bitcoin’s deep drawdown phase may extend recovery to the second quarter of 2027. Historical data shows…
BTC USD Price Drops Below $67K Amid Rising Treasury Yields
Key Takeaways: BTC USD slumped to $66,300, its first drop below $67K since March 9, driven by macroeconomic…
Second Bill Targets Insider Trading in Prediction Markets
Key Takeaways: The Public Integrity in Financial Prediction Markets Act of 2026 prohibits government officials from using insider…
India Apprehends Key Figure in Myanmar Crypto Fraud Complex
Key Takeaways: India’s Central Bureau of Investigation (CBI) arrested a key player in a scam that trafficked Indian…
Bitcoin and Profit Metrics: Will History Repeat Itself?
Key Takeaways: Historical patterns reveal that when Bitcoin’s supply in profit falls below 50%, significant price rallies ensue.…
Bitcoin ‘Compression’ Outcome Could Propel BTC Towards $80K: An Analyst’s Perspective
Key Takeaways: Bitcoin’s price is testing a critical $71,500 level, hinting at a possible rally to $80,000. Traders…
