Bolivians Turn to USDT to Preserve Wealth as Boliviano Loses Half Its Value

Bolivia is witnessing a significant shift in its economic landscape as major international brands, including Toyota, Yamaha, and BYD, begin accepting Tether’s USDT stablecoin for payments. This development marks a pivotal moment in the country’s adoption of digital assets, driven by severe US dollar shortages and the Boliviano’s declining purchasing power. Tether CEO Paolo Ardoino announced the initiative, highlighting that USDT is now a viable payment method for car purchases at dealerships, with BitGo confirming the first such transaction in late September. The move underscores growing reliance on stablecoins to navigate Bolivia’s currency crisis, where foreign exchange reserves have plummeted 98% since 2014 to just $171 million as of August 2025.

The Bolivian government’s decision to lift its crypto ban in June 2024 has accelerated this transition. State-owned oil firm Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) was among the first to adopt crypto for fuel imports, addressing dollar scarcity. Meanwhile, Bolivia’s Central Bank reported a 630% surge in crypto transactions to $294 million in the first half of 2025, compared to $46.5 million in 2024. This growth is further supported by Banco Bisa, a major local bank, which launched USDT custodial services in October 2024, enabling secure trading and cross-border payments. Financial regulator Yvette Espinoza noted that such initiatives align with efforts to integrate crypto into a supervised framework.

Retailers and businesses are also embracing USDT to stabilize operations. Duty Fly, a subsidiary of Bolivia’s leading cosmetics distributor, now prices goods in USDT at airports, with conversions tied to the Banco Central de Bolivia’s rate. BitGo’s collaboration with Tether and Bolivia Toyota has facilitated seamless USDT transactions, while TowerBank’s Gabriel Campa highlighted how businesses convert stablecoins to US dollars for international trade. This circular economy of stablecoins is critical for maintaining commerce amid liquidity constraints.

The economic rationale for USDT adoption is stark. Bolivia’s Boliviano has lost nearly 50% of its value against the dollar in 2025, with inflation reaching a 40-year high. As a result, many Bolivians have shifted to stablecoins to preserve purchasing power. Over 10,000 official crypto transactions were recorded by May 2025, totaling 611 million Bolivianos ($88 million), with individual users and small businesses driving the trend. Peer-to-peer transactions, unregistered with regulators, suggest actual usage is even higher.

Regionally, Bolivia’s shift mirrors broader Latin American trends. Countries like Argentina and Mexico, grappling with hyperinflation and currency depreciation, have seen stablecoins like USDC and USDT become essential wealth preservation tools. Chainalysis data shows Latin America’s crypto adoption rose to 63% in 2025, with the region processing $415 billion in digital assets between 2023 and 2024. Bolivia’s progress has positioned it among top adopters, with legislators like Mariela Baldivieso advocating for further integration to strengthen economic resilience.

As Bolivia prepares for a presidential runoff in October 2025, the role of crypto in its economic strategy remains a key debate. While Rodrigo Paz Pereira has proposed blockchain for transparency, the winning party will face the challenge of balancing innovation with regulatory oversight. For now, USDT’s integration into daily commerce—from car purchases to retail transactions—reflects a pragmatic response to systemic economic instability, signaling a broader transformation in how Bolivians manage their finances.