Bolivia Considers Integrating Tether’s USDT into National Payment System

Bolivia is exploring the incorporation of Tether’s USDT stablecoin into its national payments system, as the country marks a significant shift towards embracing regulated digital assets. This consideration follows the country’s previous ban on crypto transactions, which has seen a major transformation since restrictions were lifted in mid-2024.

Government’s Evaluation of USDT

During a press conference, Economy Minister José Gabriel Espinoza announced that the Bolivian government is assessing whether USDT could function alongside the boliviano, the national currency, as well as the U.S. dollar. However, the proposal remains in a phase of technical review, and no official guidelines or legal status for the stablecoin have yet been established.

Increasing Crypto Adoption

The interest in integrating USDT comes amidst a dramatic increase in cryptocurrency usage across Bolivia. Following the central bank’s decision to lift transaction restrictions in June 2024, the volume of crypto transactions soared from $46.5 million in the first half of 2024 to $294 million during the same period the following year, marking a 630% increase.

Framework for Digital Transactions

In light of this growing demand, government officials are working on developing a framework that would enable banks, digital wallets, and payment providers to facilitate the use of USDT. Any potential rollout of this initiative will necessitate enhanced anti-money laundering measures, particularly because Bolivia is currently on the Financial Action Task Force’s grey list, which subjects the nation to heightened scrutiny regarding financial crime controls.

Economic Context

Bolivia has undergone significant economic changes, including the termination of its long-standing fixed dollar peg and the shift to a floating exchange rate earlier this year. The state energy company, YPFB, had earlier plans to incorporate crypto for energy imports, reflecting a broader trend in the financial sector looking for solutions amid limited dollar availability.

Furthermore, the state-controlled Banco Unión has begun allowing customers to purchase USDT through the Yasta wallet via EFY Finance, enabling international payments and remittances.