As Currencies Crumble, USDT Rises as Unbanked Bolivia's Financial Lifeline

Tether CEO Paolo Ardoino highlighted the growing role of USDT in emerging markets, emphasizing its utility as a stable medium for payments, remittances, and cross-border transactions. In a July 2025 update, Ardoino noted that on-chain transfers of USDT surged by 120% in the first half of 2025 compared to the entire year of 2024, driven primarily by adoption in West Asia, the Middle East, and Africa, which accounted for 66% of the growth. This expansion underscores USDT’s role as a hedge against local currency volatility and a facilitator of financial inclusion in regions with underdeveloped banking systems .

Bolivia emerged as a key case study in this trend. The country’s Central Bank reported a 630% year-over-year increase in crypto transactions, reaching $430 million between June 2024 and June 2025. Daily USDT payments in Bolivia reached $600,000 by mid-2025, with businesses increasingly adopting the stablecoin to mitigate risks from 25% inflation and dollar shortages. Notably, major retailers like Toyota and BYD began accepting USDT for car purchases, enabling consumers to transact in “digital dollars” to preserve value amid economic instability .

Ardoino attributed this adoption to USDT’s practicality in economies with weak banking infrastructure. In Bolivia, where 60% of the population is unbanked, the stablecoin has become a critical tool for remittances. The country receives $1.5 billion in annual remittances, with USDT facilitating near-instant, low-cost transfers via mobile wallets. This has been particularly impactful for families receiving funds from abroad, bypassing traditional banking channels .

The CEO also referenced Bolivia’s collaboration with El Salvador, the first country to adopt Bitcoin as legal tender. Officials from both nations engaged in discussions to develop a transparent crypto framework, with Bolivia seeking to replicate El Salvador’s experience while addressing concerns like money laundering. Regulatory clarity, Ardoino suggested, could further accelerate USDT’s integration into everyday transactions, with projections indicating crypto could account for 10% of Bolivia’s retail payments in the near term .

Globally, USDT’s on-chain growth reflects broader adoption in emerging markets. Tether’s on-chain transfer volume in H1 2025 outpaced the entire 2024 total, driven by demand for stable, low-cost cross-border solutions. Ardoino emphasized that USDT’s utility in these regions—where fiat currencies are volatile and banking access is limited—positions it as a critical tool for financial resilience. This aligns with Tether’s strategy to expand beyond its dominance in the U.S. and Europe, targeting markets where stablecoins can serve as both a store of value and a transactional medium .

The surge in USDT adoption also highlights its role in fostering economic activity in underserved regions. In Bolivia, for instance, small businesses and service providers now display “Aceptamos USDT” signs, integrating the stablecoin into daily commerce. This shift, Ardoino argued, reflects a growing recognition of crypto’s potential to empower individuals and businesses in economies constrained by traditional financial systems .