Bolivia is weighing a move that seemed impossible just a few years ago: integrating Tether’s USDT stablecoin into its national payment system. Bolivia’s Minister of Economy, Jose Gabriel Espinoza, announced during a press conference on Monday (July 13) that the government is evaluating whether USDT could circulate alongside the boliviano and the US dollar.
This does not mean USDT will immediately become legal tender. According to local media outlet La Razon, the proposal is still under technical review - the government has yet to issue implementation rules or grant it legal tender status. Officials are currently drafting a framework for banks, digital wallets, and payment providers.
Why Bolivia Is Moving Now
The push comes amid a sharp surge in crypto adoption since Bolivia’s central bank lifted restrictions on crypto transactions in June 2024. The figures are striking: crypto transaction volume soared from $46.5 million in the first half of 2024 to $294 million in the same period the following year - an increase of around 630%.
Demand has strengthened as citizens and businesses seek alternatives to increasingly scarce US dollars in the country. Bolivia even ended its fixed dollar peg and shifted to a floating exchange rate earlier this year. Stablecoins like USDT offer the sought-after price stability without the scramble for hard-to-find physical dollar bills.
A Path Not Entirely Smooth
Even so, any rollout will demand tighter anti-money laundering controls. This is because Bolivia remains on the Financial Action Task Force (FATF) grey list, meaning the country is under increased monitoring for gaps in its financial crimes regime. Footsteps in this direction are already visible: state energy firm YPFB announced plans to use crypto for energy imports last year, the central bank previously sought assistance from El Salvador regarding regulatory frameworks, and state-owned bank Banco Union, through its Yasta wallet, has allowed customers to buy USDT via EFY Finance since April for international payments and remittances.
A Signal for the Region
If this initiative moves forward, Bolivia will follow in the footsteps of El Salvador as a Latin American nation embracing digital assets at the policy level - albeit with a more cautious approach, favoring stablecoins over Bitcoin. For observers in Indonesia, the Bolivian case is intriguing because it illustrates how hard currency shortages can drive a country to adopt crypto not for speculation, but for everyday transactional needs.
Reported by CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
