Bolivia Turns to USDT as FX Reserves Collapse: Digital Dollar Lifeline Amid Crisis

Toyota, BYD, and Yamaha have begun accepting Tether’s USDT stablecoin for vehicle purchases in Bolivia, marking a significant shift as the country grapples with a severe foreign exchange crisis. The move follows Bolivia’s 2024 decision to lift its crypto ban, allowing digital assets to fill gaps in a collapsing dollar market. According to Trading Economics, Bolivia’s foreign exchange reserves have plummeted by 98% over the past decade, from $12.7 billion in 2014 to $171 million in August 2025, forcing citizens to seek alternatives like stablecoins to preserve purchasing power. Tether CEO Paolo Ardoino confirmed the adoption, noting that USDT serves as a “digital dollar” for hundreds of millions in emerging markets. BitGo verified the first USDT-powered Toyota transaction in Bolivia, with dealerships now displaying banners promoting the method as “easy, fast, and safe” Toyota, Yamaha, and BYD Accept Tether in Bolivia Amid Dollar Crisis^[1].

The surge in stablecoin adoption is part of a broader Latin American trend. Regional crypto transactions hit $294 million in the first half of 2025, a 630% increase from $46.5 million in 2024 Toyota, BYD, and Yamaha Now Accept USDT Payments in Bolivia, Tether CEO Confirms^[2]. Argentina, Brazil, and Venezuela lead the region in stablecoin usage, driven by inflation, currency depreciation, and remittance needs. Bitso’s analysis highlights that 71% of Latin American companies use stablecoins for cross-border payments, the highest globally. In Bolivia, the state-owned oil company YPFB began accepting crypto for fuel imports in March 2025, while airport retailers and importers increasingly price goods in USDT.

Tether’s expansion in Bolivia contrasts with its retreat from Uruguay, where it has halted Bitcoin mining operations by 2025 due to unsustainable energy costs. Uruguay’s state-owned utility UTE disconnected two of Tether’s mining facilities in July 2025 after the company failed to pay $5 million in electricity bills. Tether had invested over $100 million in the project, aiming to leverage Uruguay’s 95% renewable energy grid, but the high tariffs and debt accumulation rendered the venture unviable. The company now plans to shift operations to Brazil, where it has partnered with Adecoagro to explore renewable energy mining Stablecoins Take Center Stage in Latin America: Bitso Business Report^[4].

The regional stablecoin landscape is rapidly maturing. A 2025 report by Bitso Business revealed that institutional stablecoin adoption in Latin America more than doubled between H2 2024 and H1 2025, with treasury operations, arbitrage, and foreign exchange management emerging as key use cases. Mexico remains the largest market, followed by Brazil and Colombia, while Argentina’s stablecoin transaction volume shares hit 61.8%. Tether’s USDT now accounts for 58.9% of the stablecoin market, with a market cap of $171.5 billion, underscoring its dominance in the region’s financial infrastructure Crypto Adoption in Latin America 2025: Stablecoins, Regulation, and Market Trends^[5].

The dual narratives of Bolivia’s crypto-driven economic adaptation and Uruguay’s mining exit highlight the volatile interplay of policy, energy economics, and market demand in Latin America. As countries like Bolivia embrace digital assets to stabilize trade and consumer spending, others, like Uruguay, face the logistical and financial hurdles of sustaining energy-intensive crypto operations. The region’s trajectory underscores stablecoins’ role as both a lifeline for economic resilience and a testbed for global fintech innovation .