Nikolas Sargeant
TL;DR
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Bolivia is evaluating the integration of Tether (USDT) into its national payments system.
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The proposal would allow USDT to circulate alongside the boliviano and the U.S. dollar, though it would not be legal tender.
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The government is developing regulations for banks, digital wallets, and payment providers.
Bolivia is exploring the possibility of incorporating Tether's USDT stablecoin into its national payments infrastructure, signaling another milestone in the country's evolving approach to cryptocurrency regulation.
Speaking at a press conference on Monday, Economy Minister José Gabriel Espinoza confirmed that authorities are assessing whether USDT could be used alongside the Bolivian boliviano and the U.S. dollar for domestic payments.
While discussions are progressing, the proposal remains under technical review, and the government has not announced implementation guidelines or granted USDT legal tender status, according to local media outlet La Razón.
Government Developing Regulatory Framework
Bolivian officials are working on a regulatory framework that would enable banks, digital wallets, and payment service providers to support stablecoin transactions.
Espinoza noted that any future rollout would require stronger anti-money laundering (AML) safeguards.
Bolivia is currently listed on the Financial Action Task Force (FATF) grey list, meaning the country is subject to enhanced international monitoring due to weaknesses in its financial crime prevention framework.
The proposed regulations are expected to establish compliance standards before stablecoins can be widely integrated into the country's financial system.
Bolivia has experienced rapid growth in cryptocurrency usage since its central bank lifted restrictions on digital asset transactions in June 2024.
According to central bank data, crypto transaction volume increased from $46.5 million during the first half of 2024 to $294 million over the same period a year later. Overall crypto transaction activity has risen by approximately 630% since the restrictions were removed.
The surge reflects growing confidence in digital assets as both consumers and businesses seek more flexible payment alternatives.
US Dollar Shortages Drive Stablecoin Demand
The increasing popularity of cryptocurrencies has been fueled in part by persistent shortages of U.S. dollars within Bolivia.
Earlier this year, the country abandoned its long-standing fixed exchange rate against the U.S. dollar and transitioned to a floating exchange rate system, increasing demand for alternative stores of value and payment methods.
Stablecoins such as USDT have become an attractive option for cross-border transactions, international trade, and preserving purchasing power.
The government's latest proposal follows several recent initiatives aimed at integrating digital assets into the country's economy.
State-owned energy company YPFB announced plans last year to use cryptocurrency for energy imports, while Bolivia's central bank has sought regulatory guidance from El Salvador, one of the world's leading crypto-friendly jurisdictions.
In April, state-controlled Banco Unión and its Yasta digital wallet also began allowing customers to purchase USDT through EFY Finance, making the stablecoin available for international payments and remittances.
