Public employees continue to earn the same, the only ones who have Bs in quantity are those who manufacture them and since they are not being given the foreign currency directly...
Lorenzo Márquez
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Bullish
The increase in the money supply in Venezuela🇻🇪💵 is driving the devaluation of the bolívar and, as a direct consequence, the price of $USDT against the bolívar has already risen by around 15% in just one week. This means that Venezuelans will increasingly turn to USDT as a refuge against inflation and the loss of purchasing power. Immediate impact on USDT 🇻🇪💵 Money supply: The Central Bank of Venezuela (BCV) raised liquidity to nearly 950,000 million bolívares. Exchange rate: The excess issuance puts upward pressure on the parallel dollar and, by extension, the price of USDT. Effect on USDT: In just one week, USDT rose 15% against the bolívar, reflecting the loss of confidence in the local currency. Trends in USDT usage in Venezuela Everyday payment method: Trade, remittances, and savings are increasingly done in USDT, which has become a “common currency” for the population. Protection against inflation: In light of the acceleration of bolívar issuance, citizens seek refuge in stablecoins like USDT and USDC. Alternative to physical dollars: Restrictions and shortages of banknotes make USDT more practical and accessible. Risks and considerations Regulatory volatility: The government could impose restrictions on the use of stablecoins. Liquidity in local exchanges: Growing demand may strain the supply of USDT on P2P platforms. Technological dependence: Accessing USDT requires connectivity and secure platforms, which can exclude less digitalized sectors. Conclusion The increase in the money supply in Venezuela strengthens the position of USDT as a financial refuge. While the bolívar loses value, USDT becomes the reference for prices, salaries, and savings. The trend points to a de facto digital dollarization, where USDT is the protagonist.
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