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The dilemma of Venezuela: USDT as a financial exit, but with centralized risks
Venezuela is under the fire of U.S. sanctions and is seeking escapes. The USDT (Tether) has become an enticing option for both the Central Bank and citizens alike. What's the reason? It is a digital dollar without the need for traditional banks. But here’s the drama: Tether is not really decentralized.
The real problem: Tether controls EVERYTHING
Although your wallet is in your control and you have the private keys, Tether Limited—the company behind USDT—can freeze your funds at any time. And it has done so. In July 2025, they froze $2.9 billion by orders of the OFAC ( U.S. regulatory agency ). In 2023, 160 complete addresses were blocked.
The irony is brutal: Venezuela is trying to evade U.S. sanctions by using a currency issued by a company subject to those same U.S. laws. It's like borrowing money from the very bank that is sanctioning you.
How it is happening in practice
The BCV officially does not recognize the use of USDT, but everything indicates that it does so for operations with oil. The officials and intermediaries are part of this. But the greater risk is on the street: the use of USDT among citizens has skyrocketed.
With an inflation rate of 85% in 2024, Venezuelans found salvation in USDT. On WhatsApp, they exchange bolívares for USDT at an almost official rate. Some oil companies are directly paying salaries in digital because there are no real currencies. This is a real-time financial system change.
The crux of the matter
Tether has never published full audits proving that each USDT is backed 1:1 by dollars. It is centralized, opaque, and potentially vulnerable to political pressure. Experts like Daniel Arraez warn: owning the private keys DOES NOT mean having real control.
A user summed it up perfectly: “It's like leaving the keys to your house with a stranger and hoping they don't change the lock”.
The balance
Venezuela faces a dilemma with no easy way out: USDT addresses immediate problems of financial crisis, but introduces a new strategic risk. Relying on an asset controlled by a U.S. company while being sanctioned by the U.S. is gambling with your life in the hands of the enemy.