Bitcoin News Today: Bolivia's 25% inflation pushes citizens to crypto as dollar shortages deepen crisis

Bolivia is facing one of its most severe economic crises in decades, with inflation hitting 25%, the highest level in 34 years. The scarcity of U.S. dollars has made it increasingly difficult for citizens to conduct basic transactions, leading many to turn to cryptocurrencies as an alternative means of preserving value and conducting business [1]. The boliviano, once a stable currency, has lost ground rapidly, and the government’s fixed exchange rate policy has only exacerbated the problem by making imported goods more expensive and deepening public distrust in traditional financial systems [1].

The crisis has pushed digital assets into the mainstream. A growing number of businesses, particularly in urban areas, now accept cryptocurrencies as a way to bypass the limitations of the local currency. At El Alto International Airport, for example, a shop sells candy and sunglasses in USDT, a stablecoin pegged to the U.S. dollar. A top university in the country has begun paying foreign professors in Bitcoin. Meanwhile, the state oil company was temporarily allowed to make foreign payments using stablecoins, signaling a shift in how the government is responding to the crisis [1].

The adoption of digital currencies has surged, with digital transactions increasing more than fivefold in the first half of 2025, reaching $300 million [1]. Analysts note that among importers, the use of crypto is particularly high, as it provides a workaround when access to hard currency is restricted. “When they can’t access hard currency and need to make urgent payments, crypto becomes a viable alternative,” said Oswaldo Barriga, an industry expert [1].

Christopher Salas, a small business owner in La Paz, is one of the many who have embraced Bitcoin. Running a modest coffee stand, he accepts payments in satoshis, the smallest unit of Bitcoin, through a QR code linked to his Blink wallet. “I’m not the only one using Bitcoin,” he said. “There’s a barbershop over there and a gym that also accepts satoshis.” For Salas, it’s not just about protecting his savings—it’s also about resistance to bureaucracy and the failing financial system [1].

The government has taken a largely hands-off approach, legalizing crypto without actively promoting its use, unlike in El Salvador, where Bitcoin was declared legal tender. In Bolivia, adoption has been driven by public demand rather than state-led initiatives. The lack of intervention has allowed private platforms and businesses to lead the way. Carlos Neira, co-founder of the Colombian wallet provider Meru, reported a 6,600% increase in Bolivian accounts on his platform since the country lifted its crypto ban [1].

However, the shift to crypto is not without risks. Some stablecoins have faced questions over the stability of their reserves, and Bitcoin’s price can be highly volatile. Despite these concerns, many Bolivians see cryptocurrencies as a better option than the local currency or the limited access to U.S. dollars. With a presidential election scheduled for August 17, there is little expectation of an immediate economic recovery, and the trend toward digital assets is likely to continue [1].

The broader Latin American region has seen similar movements in countries like Venezuela and Argentina, where crypto is often used as a store of value during periods of high inflation. In Bolivia, however, cryptocurrencies are increasingly serving as a functional medium of exchange, making the country a notable example of how digital assets can become integrated into daily economic life during times of financial instability [1].

Source: [1] Inflation in Bolivia hits 25%, pushing citizens toward cryptocurrencies as dollar shortages persist (https://coinmarketcap.com/community/articles/689657250ba3eb5ab86f369a/)