The Bolivian government plans to embrace cryptocurrencies and stablecoins to enhance the nation’s economy amidst inflationary pressures and a scarcity of US dollars. Economic Minister Jose Gabriel Espinoza made this announcement on Tuesday, revealing that banks will be permitted to hold cryptocurrencies for clients. Digital currencies will be accepted as legal payment for savings accounts, credit products, and loans, as reported by Reuters.
“You can’t control crypto globally, so you have to recognize it and use it to your advantage,” said Espinoza.
Crypto Adoption Rate
The growth rate of crypto adoption by geographic region in 2024 and 2025. Source: Chainalysis
Like many Latin American countries, Bolivia faces significant fiat currency inflation, driving residents to utilize stablecoins as both a store of value and a means of transaction. The global trend of integrating cryptocurrencies into financial systems comes from strategic considerations outlined by analysts who assert that a fear of being left behind is a key motivator behind national cryptocurrency adoption.
Inflation Urging Bolivians Towards Cryptocurrency Use
The average inflation rate for the country’s fiat currency, the boliviano, exceeded 22% over the last year, as indicated by the National Institute of Statistics.
Bolivia’s Inflation
Bolivia’s consumer price index reflecting 12-month inflation. Source: Bolivia National Institute of Statistics
In Bolivia, businesses are beginning to quote prices in Tether’s USDt as a substitute for the local currency. YPFB, the state-run energy firm, is developing a framework to settle energy import payments with cryptocurrencies, although specific details about the cryptocurrencies to be employed remain undisclosed. Additionally, vehicle manufacturers like Toyota and Yamaha are now accepting USDT as payment as a means to navigate depleted US dollar supplies.
The adoption of stablecoins serves to fulfill demand while circumventing local currency restrictions, allowing individuals with mobile devices and crypto wallets to access dollar-pegged tokens without needing traditional bank structures, which often impose stringent regulations.
High inflation and rigorous currency policies further support stablecoins as a favored alternative for retaining value in Latin America and other emerging markets facing similar issues.
