Bolivia’s Dollar Crisis Drives Crypto Shift: USDT Fuels Trade as Fiat Falters

Bolivia has recorded its first automobile purchase using Tether’s USDT stablecoin, marking a significant milestone in the country’s accelerating cryptocurrency adoption. According to reports, a Toyota vehicle was bought with USDT in September 2025, verified by crypto security firm BitGo and highlighted by Tether CEO Paolo Ardoino through social media. This transaction follows a strategic shift by three major automakers—Toyota, Yamaha, and BYD—to accept USDT as a payment method, a move attributed to Bolivia’s severe U.S. dollar shortagetitle4^[4].

The adoption of USDT in Bolivia has surged amid economic challenges. The Central Bank of Bolivia (BCB) reported $294 million in crypto payments during the first half of 2025, a 630% increase compared to $46.5 million in 2024title4^[4]. This growth is driven by the country’s dwindling foreign exchange reserves, which have fallen 98% from $12.7 billion in July 2014 to $171 million as of August 2025, according to Trading Economics datatitle5^[5]. Businesses and consumers are increasingly turning to stablecoins like USDT to hedge against the boliviano’s depreciation and facilitate international trade.

The shift to crypto payments is supported by recent policy reforms. Bolivia’s government lifted its crypto ban in June 2024, allowing banks to process Bitcoin and stablecoin transactions under regulated frameworkstitle6^[6]. This policy change enabled state-owned entities, including the Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), to use crypto for fuel imports. Additionally, Banco Bisa launched USDT custodial services in October 2024, providing individuals with secure storage and transaction capabilitiestitle7^[7]. These developments have positioned Bolivia as a regional leader in crypto adoption, with legislators like Mariela Baldivieso of the Comunidad Ciudadana party highlighting its potential to transform Latin America’s economic landscapetitle4^[4].

The integration of USDT into daily commerce reflects broader regional trends. Latin America’s crypto adoption index rose from 53% in 2024 to 63% year-over-year, according to Chainalysis, with the region handling $415 billion in digital asset activity between July 2023 and June 2024title7^[7]. Countries such as Argentina and Venezuela, grappling with hyperinflation, have similarly adopted stablecoins as a store of value. In Bolivia, the use of USDT extends beyond vehicle purchases to include airport retail and import transactions, creating a circular economy that sustains trade despite liquidity constraintstitle5^[5].

Political developments will further shape Bolivia’s crypto trajectory. The October 19 presidential runoff election between Rodrigo Paz Pereira and Jorge “Tuto” Quiroga could determine the country’s regulatory approach. Paz Pereira has proposed blockchain-based anti-corruption measures, while Quiroga’s stance remains unclear. The outcome may influence whether Bolivia solidifies its position among Latin America’s top crypto adopters or faces regulatory uncertaintytitle5^[5].