Bolivian Small Businesses Embrace Crypto Amid 530% Surge in Transactions

Bolivian small businesses are increasingly turning to cryptocurrency as a means of payment amidst the country's ongoing financial crisis. This shift is driven by a significant loss of trust in the official currency, which has seen its value plummet on the black market. The central bank's depletion of dollar reserves has further exacerbated the situation, leading to fuel shortages and historic levels of inflation. In response, small businesses such as restaurants and beauty salons are beginning to accept crypto payments, viewing them as a more stable alternative.

The adoption of cryptocurrency in Bolivia has seen a remarkable surge, with transactions increasing by 530% in the first half of 2025 compared to the same period last year. According to the central bank, crypto transactions rose from $46.5 million to $294 million over the course of the year. This trend is particularly evident in the city of Cochabamba, where ATMs allow shoppers to exchange coins for cryptocurrency, and beauty salons offer discounts for crypto payments.

The appeal of crypto lies in its perceived stability compared to the volatile Bolivian currency. Bolivians are increasingly turning to Bitcoin (BTC) and stablecoins like Tether (USDT) to safeguard their savings and purchasing power. Daily USDT volumes in the country are estimated to be as high as $600,000, although this still represents a small fraction of the $12–$14 million cash-based black market. However, the reliance on crypto is rapidly growing, indicating a broader shift in financial behavior.

This trend is not unique to Bolivia. Other countries facing similar economic challenges, such as Turkey and Lebanon, have also seen a surge in crypto adoption. In 2023, Turkey and Lebanon experienced significant inflation, prompting their citizens to seek stability in crypto. Similarly, in Latin America, Argentina's inflation rate of over 100% in 2023 led to widespread use of crypto for everyday payments, with Argentinians receiving more than $85.4 billion in crypto that year.

The embrace of crypto by Bolivian small businesses reflects a broader pattern in regions grappling with economic instability. As traditional financial systems falter, cryptocurrency offers a viable alternative, providing a measure of stability and security in uncertain times. This trend is likely to continue as more businesses and individuals recognize the benefits of crypto in protecting their financial interests.