Venezuela's economic crisis has long been documented in global financial textbooks—an annual inflation rate of over 200% causes every paycheck to depreciate as soon as it arrives, and the local currency has almost become worthless paper. But this crisis has also given rise to a phenomenon: Bitcoin and stablecoins have become a lifeline for ordinary people here.

The reason is straightforward. Remittances from abroad flow through encrypted channels, bypassing foreign exchange controls; stablecoins held in hand can lock in purchasing power, preventing cash from shrinking in value. For ordinary people who are financially isolated, this is not an investment choice but a way to survive.

At the government level, efforts are also underway. The military is engaging in digital currency mining in an attempt to develop new sources of revenue; the oil-backed coin plan is even more ambitious—aiming to break through U.S. financial sanctions using domestic digital assets. However, the results are limited. The core issue is that USD stablecoins, backed by enormous liquidity and credit, have already taken over the financial hub of the crypto world.

This reflects a deeper restructuring of power. The U.S. extends its influence into the blockchain ecosystem through stablecoin frameworks; Latin American countries, lacking sufficient foreign exchange reserves and vulnerable to international sanctions, are more likely to abandon their local currencies and turn to USD stablecoins or Bitcoin to hedge risks. In these regions, cryptocurrencies are no longer just speculative concepts but essential tools to combat inflation and preserve assets.