The contribution of USD Tether (USDT), the largest dollar stable coin on the market, has maintained Venezuela prices, reaching levels above 300 bolivars in each unit of digital currency.
last month, USDT price has risen by 40%provided via 214 bolivars by the following site P2P.army, as shown in the graph below.
USDT, the largest stability by capital letters, is usually negotiated in Venezuela through the Binance Pares (P2P) market, the world’s largest cryptocurrency exchange. There, the price of digital currency is on average at 293 borívars for purchases, at 300 borívars.
Take into account that in that country the official dollar price is at the Central Bank of Venezuela (BCV). For example, this Friday, the dollar price is 173.73 volvres, as you can see on the BCV page itself.
It is important to emphasize that USDT is a stable cryptocurrency or Stablecoin, such as Circle USDC, for example. So it’s an asset that is completely different from traditional dollars, but its value is related to it.
And while it is true that this digital currency is related to American currency for legal purposes, It is cryptoactive, along with others in the market, which has its own regulations in the Caribbean country.
The sustained increase USDT experienced in Venezuela mainly deals with a variety of factors, including deep depreciation in Bolivar, and reduced inflation and purchasing power.
This adds a lack of physical currency in the economy, and at the same time, as Cryptonotics reports, digital assets function daily due to the pronounced growth in the daily use of domestic USDT. Market prices will be raised through the Supply and Demand Act.
Another reason to promote the contribution of USDT in Venezuela is exchange interventions that carry out BCVs. This is a measure to stop the depreciation of Bolivar. This is done by allocating dollars to national banks offered in the market, and injecting official currency into the system.
However, these liquidations are not completely reached to meet all the demands of the currency. As a result, many companies and people are removed from the official market, and they need to look for dollars in other applications, such as parallel markets and Binance (or USDT stability).
