Bolivia’s government is evaluating whether to integrate Tether‘s USDT stablecoin into the country’s national payments system. If adopted, USDT could be used alongside the boliviano and the US dollar for domestic transactions. As of now, USDT has not received legal tender status, and officials have not published rules for its rollout.
Government assesses potential for USDT adoption
Economy Minister José Gabriel Espinoza stated that officials are performing a detailed technical assessment of the proposal to include USDT in the financial system. The Ministry of Economy is also drafting regulatory guidelines for banks, digital wallets, and payment service providers on how they might manage stablecoin payments in a controlled environment.
Authorities have not issued a timeline for potential implementation or outlined specific operating standards. Regulatory teams are examining how USDT transactions would comply with current financial, currency, and anti-money laundering regulations. These reviews will play a decisive role in determining the stablecoin’s integration into Bolivia’s payments infrastructure.
Espinoza emphasized that the government is reviewing both the technical and regulatory aspects of allowing USDT to function within the national financial ecosystem.
Integrating USDT would necessitate enhanced oversight and reporting standards for participating banks and payment processors. Bolivia remains on the Financial Action Task Force (FATF) grey list due to existing gaps in its frameworks for combating financial crime. As a result, the government will likely require stronger controls on all cryptocurrency-related transactions.
Mini dictionary: Financial Action Task Force (FATF): An international organization that sets standards to combat money laundering and terrorist financing worldwide.
Digital asset activity surges after regulatory changes
Bolivia’s central bank lifted previous restrictions on cryptocurrency transactions in June 2024. Following this move, digital asset activity in the country climbed significantly. Transaction volumes reached $294 million in the second half of last year, compared to $46.5 million during the first half of 2024. The central bank attributed a 630% increase in transaction volume to the end of these restrictions, reflecting a rising appetite for digital assets throughout the national financial market.
| Period | Transaction Volume |
|---|---|
| First half of 2024 | $46.5 million |
| Second half of 2024 | $294 million |
The spike in demand for digital currencies has been fueled by ongoing foreign currency shortages and a transition from a fixed dollar exchange rate to a floating system earlier this year. As the availability of US dollars becomes restricted, businesses and individuals have turned to alternatives such as stablecoins for both domestic and cross-border payments.
Pilot projects from state companies and banks
State-owned Banco Unión, a major Bolivian financial institution, expanded its Yasta digital wallet in April to include USDT purchase options. Through a partnership with EFY Finance, this service enables customers to use USDT for remittances and international transfers, marking one of the country’s first regulated avenues for stablecoin transactions.
The national oil and gas company YPFB last year revealed plans to utilize cryptocurrency for purchasing imported energy. Meanwhile, the central bank has sought technical advice from El Salvador, which implemented a national digital asset framework after recognizing Bitcoin as legal tender. These developments indicate a broader official interest in digital finance and managed crypto adoption. However, any further expansion will first require the completion of technical reviews and formal publication of operating standards for USDT.
