Bolivia's 630% Crypto Payment Surge Fueled by USDT Amid Economic Crisis

The U.S. dollar-pegged stablecoin USDT is accelerating crypto adoption in Bolivia as Toyota, BYD, and Yamaha begin accepting it for vehicle purchases, a move driven by the country’s severe foreign exchange shortages. Tether CEO Paolo Ardoino confirmed the shift, highlighting that dealerships in La Paz now display signs promoting USDT as an “easy, fast, and safe” payment option for cars. The first Toyota transaction using USDT was completed with institutional custody support from BitGo, marking a milestone in Latin America’s crypto integration Tether CEO Paolo Ardoino, X post^[1]. This follows Bolivia’s 2024 policy reversal, which lifted a decade-long crypto ban and permitted banks to process stablecoin transactions, catalyzing a 630% surge in crypto payments to $294 million in the first half of 2025 Central Bank of Bolivia, crypto payment data^[2].

Bolivia’s economic crisis, characterized by a 98% decline in foreign exchange reserves from $12.7 billion in 2014 to $171 million in August 2025, has eroded confidence in the boliviano. Businesses and consumers are increasingly turning to USDT and other stablecoins to hedge against inflation and currency depreciation. State-owned oil company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) began accepting crypto for fuel imports in March 2025, while airport retailers now price basic goods in USDT. TowerBank’s Gabriel Campa noted that importers are leveraging stablecoins to convert local or offshore holdings into USD, sustaining trade amid liquidity constraints TowerBank, interview with Gabriel Campa^[3].

The Central Bank of Bolivia (BCB) has endorsed crypto as a “viable and reliable alternative” to fiat, signing a memorandum of understanding with El Salvador’s National Commission of Digital Assets in July to enhance adoption. Regulatory clarity has spurred institutional participation, including Banco Bisa’s launch of USDT custodial services in October 2024. Meanwhile, Tether’s partnership with Bolivia Toyota and BitGo underscores the growing institutional infrastructure supporting stablecoin transactions BitGo and Tether partnership announcement^[4].

Political developments will shape the future of crypto in Bolivia. The October 19 presidential runoff between Rodrigo Paz Pereira’s Christian Democratic Party and Jorge Quiroga’s Freedom and Democracy alliance could determine policy trajectories. Paz Pereira has proposed blockchain-based transparency reforms to combat corruption, while Quiroga’s stance remains unclear. The outcome may influence whether Bolivia solidifies its position as a top-five crypto adopter in Latin America, following regional trends where Brazil, Venezuela, and Argentina rank among the top 20 adopters globally Chainalysis Global Crypto Adoption Index^[5].

Latin America’s broader adoption of stablecoins is driven by economic instability. Chainalysis data reveals regional crypto adoption rose from 53% in 2024 to 63% in 2025, with Argentina and Mexico particularly reliant on USDT amid hyperinflation and currency devaluation. Bolivia’s rapid shift—from crypto prohibition to mainstream adoption—reflects a pattern seen across the region, where stablecoins serve as both transactional tools and inflation hedges. As of September 2025, Bolivia’s daily USDT liquidity grew from $20,000 to nearly $1 million in under a year, signaling deepening integration Bitfinex and TowerBank liquidity analysis^[6].