Chinese EVs, USDT Payments Highlight Dollar's Unyielding Hold in Bolivia

China’s automotive exports to Bolivia are now being settled in USDT, a move underscoring the enduring dominance of the U.S. dollar in global trade despite Beijing’s push for de-dollarization. Toyota, BYD, and Yamaha began accepting Tether’s (USDT) stablecoin for car purchases in Bolivia in September 2025, as reported by Tether CEO Paolo ArdoinoTether CEO Paolo Ardoino, X post^[1]. This development highlights a paradox: Chinese electric vehicles, symbols of Beijing’s economic outreach, are fueling demand for USDT—a digital dollar—rather than the yuan.

Bolivia’s rapid adoption of stablecoins is driven by economic instability. The Central Bank of Bolivia (BCB) reported that crypto transactions surged 630% in the first half of 2025, reaching $294 million, compared to $46.5 million in the same period in 2024Central Bank of Bolivia (BCB)^[2]. The country lifted its decade-long crypto ban in June 2024, enabling financial institutions to process digital assetsAutoridad de Supervisión del Sistema Financiero (ASFI)^[3]. With inflation exceeding 25% in 2025 and dwindling U.S. dollar reserves, Bolivians increasingly use USDT to hedge against currency devaluation.

The integration of USDT into Bolivia’s economy reflects broader trends in Latin America, where stablecoins are becoming critical tools for financial stability. Argentina, grappling with inflation above 100%, and Brazil, with its robust crypto regulations, have seen stablecoin adoption riseChainalysis Global Crypto Adoption Index^[4]. Mexico, where the peso depreciated 23% in 2025, now relies on USDT and Bitcoin for international transfers. Chainalysis data shows Latin America’s crypto adoption climbed from 53% in 2024 to 63% in 2025, processing nearly $415 billion in digital assetsChainalysis^[5].

China’s efforts to promote the yuan in Latin America have faced challenges. While Bolivia settled 10% of its trade in yuan in 2025, and Brazil and Argentina tapped into RMB liquidity, retail consumers continue to favor USDT. “For merchants and consumers in inflation-strapped economies, USDT offers stability, speed, and liquidity the yuan cannot match,” noted the Asia Morning BriefingAsia Morning Briefing^[6]. This preference is rooted in the yuan’s limited offshore use, which contrasts with the dollar’s global trust and infrastructure.

The shift underscores the limitations of China’s digital yuan (CBDC) and currency swap initiatives. Unlike stablecoins, which enable instant, low-cost transactions, CBDCs remain confined to domestic trialsJ.P. Morgan Global Macro Research^[7]. J.P. Morgan analysts highlighted that while the dollar’s share in global trade invoicing and cross-border liabilities remains robust, de-dollarization trends in central bank reserves and bond markets persist. However, stablecoins like USDT are circumventing these structural shifts by embedding the dollar into everyday commerce in emerging marketsJ.P. Morgan Commodity Strategy^[8].

Toyota’s foray into USDT payments aligns with its broader blockchain strategy. In 2024, the company’s Blockchain Lab developed a mobility-oriented account system using Ethereum’s ERC-4337 standard, while its finance division launched blockchain-based security token bondsToyota Blockchain Lab^[9]. These initiatives signal a growing acceptance of digital finance in the automotive sector, even as geopolitical tensions over currency dominance persist.

The irony of Chinese EVs being paid for in USDT reflects a larger reality: while Beijing promotes de-dollarization through trade and diplomacy, the dollar’s entrenched role in global finance—amplified by stablecoins—continues to outpace alternative currencies. Bolivia’s experience mirrors that of other Latin American nations, where stablecoins are not just preserving purchasing power but also enabling cross-border trade and remittancesBitGo and Central Bank of Bolivia^[10].