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Venezuelans Crave USDT as Dollar Exchange Rate Explodes

Author: Content Editor
Venezuelans are increasingly using Tether's USDT as a source of dollar liquidity in the country due to the large gap between the official government exchange rate and the black market rate. This has led to the adoption of stablecoins as a savings tool and a decrease in the use of physical dollars as a medium of exchange. The government has tried to contain the black market rates by injecting dollars into the banking sector, but with limited success. Tether has become a key player in the Venezuelan exchange rate, with an estimated 76% of crypto transactions in the country involving USDT. The use of stablecoins in Venezuela has also been highlighted in the latest Chainalysis Latam Report, which found that Venezuelans were drawn to stablecoins to combat fiat currency depreciation. This trend demonstrates the potential of cryptocurrencies as tools to withstand economic challenges in countries like Venezuela.

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