Author: Nancy, PANews

Overnight, Venezuela lost control of its own destiny.

The forced removal of President Maduro and his wife by the US military is not only the darkest moment for this South American nation, but also reveals a harsh reality: under economic blockades, extraterritorial legal jurisdiction, and financial sanctions, the traditional defenses of sovereignty are gradually collapsing. This situation may become a survival challenge that more countries and even individuals will have to face in the future.

In Venezuela, which has long been mired in hyperinflation and the shadow of sanctions, a solution seems to have been provided in advance. Here, sovereign currencies are being gradually abandoned, and crypto assets have become the value carrier for the people's livelihood, while also providing the country with alternative financial tools to circumvent financial blockades.

Today, this survival choice is rapidly evolving into a mainstream financial trend globally. For the crypto industry, how to build a secure and reliable new financial channel for users outside the crypto sphere? This is not only a technical challenge, but also a historic opportunity for the industry to expand its reach.

Venezuela builds a crypto parallel economy as its fiat currency becomes less valuable than paper money.

In Venezuela, crypto assets are not a lottery to get rich, but a ticket to weather the economic storm.

This country, long plagued by hyperinflation, is undergoing an unprecedented financial transformation. Data shows that Venezuela ranks ninth globally in per capita cryptocurrency usage, and adoption continues to climb at an astonishing rate year after year.

Imagine a country where over 30% of businesses, services, and enterprises have fully embraced cryptocurrency. From street vendors selling food and everyday grocery shopping to payroll and service fee settlements, cryptocurrency has permeated every corner of society.

The root cause of this financial migration lies in the complete collapse of Venezuela's fiat currency system. Excessive government money printing, plummeting oil prices, international sanctions, and systemic corruption pushed inflation into an out-of-control abyss. Despite repeated official attempts to salvage the situation by "removing zeros from the currency," the bolivar's devaluation had already outpaced the printing press.

Ultimately, reality became almost absurd: people held "millions of dollars" yet couldn't afford a roll of toilet paper or half a carton of eggs. The fiat currency completely lost its monetary function, even being folded into wallets, handbags, and woven into handicrafts for sale on the streets. For millions of Venezuelans, holding bolivars meant watching their savings evaporate.

Amid the ruins of traditional finance, the entire nation has been forced to seek new ways to survive. Today, in the streets and alleys of Venezuela, a parallel economic system backed by cryptocurrency and used to combat inflation has quietly taken shape.

Many ordinary Venezuelans immediately exchange their bolivar income for USDT or other cryptocurrencies upon receipt to avoid further devaluation, a practice that has become commonplace. With millions of Venezuelans emigrating, cryptocurrency remittances are increasingly becoming a vital lifeline for families remaining in Venezuela. Statistics show that approximately 9% of Venezuela's annual remittances of about $5.4 billion are processed through cryptocurrency channels. Of course, USDT is not only used for savings and remittances but also extends to everyday business transactions; currently, about 10% of grocery payments are completed using cryptocurrency.

As US sanctions restricted the circulation of the US dollar and the government cracked down on black market dollar transactions, the Venezuelan government gradually allowed the private sector to use USDT for currency exchange starting in 2024 to maintain economic operations. It can be said that crypto assets have become a shield for people to protect their hard-earned money and prevent asset devaluation, as well as a necessity for basic survival.

The penetration of cryptocurrencies is not limited to the street economy; it is also impacting Venezuela's economic lifeline. A growing number of local businesses, banks, and even oil-related institutions are turning to stablecoin settlements. It's an open secret that, to circumvent US financial sanctions, approximately 80% of Venezuela's oil revenue is settled in USDT. The Venezuelan government also launched the state-backed cryptocurrency Petro, but it was ultimately discontinued. Furthermore, Venezuela is widely speculated to have established a "cryptocurrency shadow settlement system" worth tens of billions of dollars. Although conclusive evidence is lacking, this system is indeed sustaining the country's economic operations.

The Venezuelan case illustrates how cryptocurrencies are emerging as a reliable alternative when traditional financial systems fail. As global geopolitical risks escalate and traditional financial infrastructure becomes increasingly weaponized, marginalized countries, businesses, and individuals are in dire need of a censorship-resistant, borderless financial tool.

The "re-instrumentation" of crypto assets and the geopolitical crisis driving narrative reconstruction

In the past, the mainstream narrative of cryptocurrencies often revolved around get-rich-quick myths and technological utopias. However, with the escalation of global geopolitical crises, cryptocurrencies have unexpectedly been thrust into the forefront of practical value, becoming an essential tool in the real world for circumventing financial blockades, maintaining wealth stability, and executing cross-border payments.

When a country's banking system is sanctioned, or a region's financial network is disrupted, cryptocurrencies, with their censorship resistance and decentralized nature, become a financial "safe haven" and "escape route." For nations, when their banking systems are sanctioned or the SWIFT network is cut off, it serves as a strategic alternative to circumvent blockades and maintain cross-border trade settlements. For individuals, in regions where fiat currency credibility has collapsed and high inflation is eroding wealth, it is a reliable means of wealth transfer and preservation.

Especially in geopolitically unstable, high-inflation regions, the vulnerability of centralized systems is fully exposed, making cryptocurrencies a “digital Noah’s Ark”.

Data also confirms this trend. According to Chainalysis data, between July 2024 and June 2025, the volume of cryptocurrency transactions in Turkey reached $200 billion (with local inflation of approximately 32%), Argentina reached $93.9 billion (with inflation of approximately 31%), Nigeria reached $92.1 billion (with inflation of approximately 16%), Venezuela reached $44.6 billion (with inflation exceeding 170%), and Bolivia reached $14.8 billion (with inflation of approximately 22%), among others.

It can be said that cryptocurrencies have evolved from fringe innovations into a core complement to mainstream financial infrastructure. People are gradually shifting their focus away from mere price fluctuations and valuing their underlying utility as a means of value transfer and storage.

Of course, this reshaping of the narrative is inseparable from the maturity of crypto infrastructure. Having bid farewell to the past predicament of network congestion and exorbitant gas fees, cryptocurrencies are upgrading from "expensive geek toys" to "inclusive financial tools," supporting not only small payments and everyday use, but also sufficient to handle the high-frequency trading needs of quasi-commercial levels. At the same time, the invisibility and ease of use of the infrastructure have significantly lowered the barrier to entry, making crypto truly accessible and laying the foundation for its large-scale expansion in real-world business scenarios.

Today, crypto assets are undergoing a profound transformation and rebirth. They are no longer limited to simple speculative tools, but are evolving into comprehensive financial assets with multiple functions, including payment settlement, value storage, and cross-border circulation. Accompanying this is the expansion of their use cases, extending from the single high-frequency speculative market to practical applications such as daily payments, payroll settlements, cross-border remittances, and asset management.

This "re-instrumentation" not only reshapes the understanding and application scenarios of crypto assets, but also poses new challenges and requirements for industry participants, and the competitive logic of the industry is undergoing a fundamental restructuring.

Building a crypto "safe harbor," exchanges are moving towards becoming the gateway to the future of finance.

Venezuela's parallel economy and the global trend of "re-instrumentation" clearly demonstrate that cryptocurrencies have evolved from a fringe asset into an indispensable financial lifeline and infrastructure in critical moments. As millions rely on them for storing value, making payments, and even sustaining national economies, a fundamental question arises: how can ordinary users securely and conveniently access this new system and manage their crypto wealth?

The core of the answer lies in centralized exchanges (CEXs), which serve as key interaction nodes. In a volatile macroeconomic environment, these users' most fundamental need is security. For them, crypto assets not only serve as daily trading tools but also as a means of saving and storing wealth. This means that achieving mainstream acceptance of crypto assets hinges on providing a platform that users can easily access and absolutely trust. The platform's security, stability, and ease of use directly determine its capacity as a next-generation financial infrastructure.

Reality has shown that in regions with unstable geopolitical situations, cryptocurrency exchanges are increasingly becoming core channels for ordinary users to store and manage their assets. Take Venezuela as an example: according to Chainalysis data, over 38% of cryptocurrency adoption in the country occurs on P2P (peer-to-peer) trading platforms. Exchanges play a central role there, not only providing secure storage for funds but also serving as hubs for trading, exchange, and exchange rate references.

This shift in role has accelerated the restructuring of the competitive logic of exchanges. In the past, competition among exchanges often focused on "involutionary competition" in terms of fees, listing speed, and marketing gimmicks. Now, the dimensions of competition have completely changed. The key lies in whether they can transcend the mere "trading venue" and transform into a "future financial gateway" that can carry multiple narratives such as cryptocurrency payments, savings, and value appreciation, and empower users to participate in wealth activities comprehensively and securely.

As a veteran trading platform with eight years of experience in the digital asset field, CoinW has built a multi-layered product ecosystem, creating an open, free, efficient, and user-friendly financial portal for users seeking to participate in the crypto world, based on security and reliability.

• CoinW, as a one-stop comprehensive trading platform, provides a full range of services including spot trading, contracts, ETFs, copy trading, and wealth management. It also relies on an industry-leading liquidity support and risk control system to ensure smooth and secure trading.

• GemW is committed to "earlier discovery, faster participation, and wider coverage," focusing on the trading of popular on-chain assets in the early stages. Through innovative designs such as no wallet registration and zero transaction fees (gas), it significantly lowers the barrier for users to enter the on-chain world.

• DeriW helps users explore the cutting-edge field of decentralized derivatives, providing a smooth trading experience comparable to centralized platforms with its high-throughput blockchain and innovative liquidity model.

• PropW focuses on trading ability assessment and improvement, helping traders grow in a practical way by providing professional tools, simulated trading funds, and a transparent reward mechanism.

These four sections are not isolated but form a progressive, closed-loop ecosystem: users can enter through the main portal CoinW, explore richer on-chain opportunities with GemW, participate in cutting-edge on-chain trading on DeriW, and improve their trading knowledge and skills through PropW. Together, they transform the "future financial gateway" from a concept into a tangible, participatory, and growth-oriented complete service experience.

However, building a future financial gateway requires not only a rich product ecosystem but also a solid security foundation. CoinW regards compliance and risk control as its core principles, building trust through a systematic approach. Over the past eight years, CoinW has adhered to a "compliance first" globalization strategy, with its compliance footprint covering multiple jurisdictions worldwide, and continues to advance its license applications and regulatory communications.

Meanwhile, on the security front, CoinW has built a multi-layered, in-depth security system combining "self-defense and open collaboration." Internally, the platform has independently developed a real-time risk control engine and is equipped with a professional penetration testing team to maintain continuously iterating proactive defense capabilities. It also introduces a zero-trust security architecture (Palo Alto Prisma) and strict terminal device management, achieving minimum access control from the network to the device. Externally, CoinW has long-term collaborations with top international security auditing firms such as CertiK to promote the alignment of security standards with global practices.

In addition, the platform has built an open and collaborative security ecosystem through a bug bounty program for white-hat researchers worldwide. This commitment to security has enabled it to consistently maintain an AAA security rating in CER.live's independent assessments.

From solidifying its foundation of security and compliance to building a comprehensive trading ecosystem, CoinW is offering more possibilities for ordinary users' crypto journeys, allowing them to participate safely and with low barriers to entry, and truly enjoy the dividends of future crypto financial development. Today, CoinW boasts over 20 million global users and an annual trading volume exceeding $200 billion. This achievement reflects not only the accelerated popularization of crypto assets but also the result of CoinW's continuous refinement of its infrastructure and long-term capabilities.

Summarize

At the eye of the storm often lies the seed of a new order. From the everyday exchange of cryptocurrency for food to the flow of oil trade through the blockchain, the Venezuelan crisis unexpectedly reflects a bottom-up global financial restructuring. It foreshadows a future where, as traditional bulwarks crack, cryptocurrency will become an indispensable "digital ark."

This ark needs a safe harbor and a reliable helmsman. Therefore, the crypto industry's focus is shifting from chasing prices to building a trusted gateway—a hub that can support all aspects of financial life, including savings, payments, and value enhancement, empowering users with ease and autonomy. This requires infrastructure that is not only robust but also trustworthy.

CoinW aims to become such an entry point. Through a solid foundation of compliance and a multi-layered product ecosystem, it seeks to filter out short-term market fluctuations and safeguard users' long-term financial journey. Its significance transcends commercial success; it lies in ensuring that every individual, in an era fraught with uncertainty, holds a reliable ticket to the future financial system.

As the mainstream world begins to seriously examine the practical value of cryptocurrencies, the real competition lies in who can ensure that this value reaches every ordinary person safely and smoothly.

This is not only about laying the foundation for technology, but also about building trust. And history favors those builders who set out early.

Risk Warning: This article is for general informational purposes only and does not constitute any investment advice or trading solicitation. The services or products mentioned may not be available in all regions. Cryptocurrency trading carries a high degree of risk; please fully understand the associated risks before participating.