Venezuela’s Economic Strain Expected to Boost Cryptocurrency Adoption

Venezuelans are increasingly dependent on blockchain technology for banking after enduring a decade of economic challenges; this reliance is expected to grow if conditions deteriorate further in the South American nation, according to blockchain intelligence firm TRM Labs.

With ongoing regional and geopolitical tensions, particularly between the US and Venezuela, contributing to macroeconomic instability and the continuous devaluation of the bolívar,
the TRM Labs team forecasted in a report released on Thursday that the demand for stablecoins as a store of value and medium of exchange will increase.

In addition, ongoing regulatory uncertainties regarding the country’s crypto regulator, SUNACRIP, combined with diminishing trust in traditional banking systems, may extend the population’s dependence on cryptocurrencies and promote greater usage.

“Without a significant change in Venezuela’s macroeconomic landscape or the establishment of cohesive regulatory oversight, the influence of digital assets — particularly stablecoins — is likely to grow.”

According to the Chainalysis 2025 Crypto Adoption Index report, Venezuela ranks 18th globally in crypto adoption, but its position rises to 9th when adjusted for population size.

Peer-to-peer transactions as a vital service for Venezuelans

Peer-to-peer (P2P) transactions, which involve direct transfers between individuals through an intermediary, along with USDT (USDT) to-fiat conversions, have become essential services in the absence of reliable banking channels in Venezuela, as noted by TRM Labs.

The blockchain intelligence firm monitored Venezuelan IP addresses and discovered that over 38% of site visits were to a single global platform offering P2P trading options, highlighting its “role in facilitating crypto access within Venezuela’s low-banking context.”

“A substantial portion of crypto-to-fiat transactions occurs through platforms that support informal settlement methods — even in the face of intermittent service disruptions.”

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“Local platforms are also crucial, especially those that provide mobile wallets and bank integrations tailored for domestic users,” the team added.

A crypto industry born from urgent necessity in Venezuela

The crypto ecosystem in Venezuela has emerged from nearly a decade of economic downfall, international sanctions, and the government’s experimentation with digital financial solutions, according to TRM Labs.