Analysis: Venezuela's inflation rate reaches 229%, USDT becomes the preferred local settlement method

Jinse Finance reported that as Venezuela's annual inflation rate soared to 229%, stablecoins such as USDT have become the "de facto" currency for millions of Venezuelans within the financial system. It is reported that locals refer to Bitcoin as "exchange dollars," while the country's currency, the bolivar, has virtually disappeared from daily commercial activities. Hyperinflation, strict capital controls, and a fragmented exchange rate system have led people to increasingly prefer stablecoins over cash or local bank transfers. From small grocery stores to medium-sized businesses, USDT has replaced fiat cash as the preferred settlement method locally.