Bolivia is considering bringing Tether’s USDT stablecoin into its national payments system. The move would further cement the country’s shift from restricting cryptocurrencies to embracing regulated digital assets.
Economy Minister José Gabriel Espinoza said on Monday that the government is evaluating whether USDT could be used alongside the boliviano and the U.S. dollar, giving consumers and businesses another way to make payments as the country continues to grapple with a shortage of dollars.
The proposal is still in its early stage with no timeline in order so far. Officials are carrying out a technical review and have not yet published implementation rules or given USDT legal-tender status.
According to local newspaper La Razón, the government is working on a regulatory framework that would allow banks, digital wallets, and payment providers to support stablecoin transactions if the plan goes ahead.
Bolivia eyes tougher financial controls
Bolivia stays on the Financial Action Task Force (FATF) grey list due to weaknesses in its anti-money laundering framework. Greater use of stablecoins would likely require a more robust compliance regime to meet international standards.
The proposal is the latest in a string of recent milestones in Bolivia’s fast-changing stance on cryptocurrency. The country had, until recently, one of the harshest online assets stances in the region. But that changed in June 2024 when the central bank removed the restrictions on crypto transactions, allowing for a regulated use.
Since then, adoption has soared. Crypto transaction volume increased to $294 million in the first half of 2025 from $46.5 million in the same period a year earlier, central bank figures show. Since the restrictions were lifted, activity has increased 630 percent, a sign of how fast digital resources have taken off.
A lot of that growth has been fuelled by Bolivia’s lack of U.S. dollars. Many companies and consumers have found cryptocurrencies to be an alternative for making payments abroad and preserving purchasing power as foreign currency becomes increasingly hard to come by.
Bolivia ditched its long-standing fixed exchange rate against the dollar in favour of a floating exchange rate earlier this year, which has boosted the demand for dollar-linked assets. And that’s where USDT could come in.
The stablecoin is designed to hold the value of the U.S. dollar one-to-one, allowing users to hold or transfer dollars digitally without having to rely on the traditional banking system.
Bolivia gradually embraces crypto
Bolivia is taking its first small steps to integrate crypto into its financial system. State-owned energy firm YPFB said last year it planned to use digital currencies for energy imports, while the country’s central bank looked to El Salvador for guidance as it built out its crypto regulatory framework.
More recently, state-owned Banco Unión and its Yasta digital wallet started offering customers to buy USDT via EFY Finance for international transactions.
If the government ultimately approves wider use of USDT, it would build on those earlier efforts and make stablecoins a more embedded part of Bolivia’s financial infrastructure.
While no decision has yet been made, the proposal is testimony to just how far the country has come in its approach to crypto. What was once viewed with trepidation is increasingly viewed as a practical solution to real economic challenges, particularly as businesses and consumers look for alternatives in an environment where access to U.S. dollars remains restricted.
