Bolivia is considering incorporating the stablecoin Tether, known by the abbreviation USDT, into its national payment system. If the government approves the framework under preparation, the digital token pegged to the US dollar could in practice function alongside the Bolivian boliviano and the dollar itself.
Bolivian Minister of Economy and Public Finance José Gabriel Espinoza stated at a press conference on Monday, July 13, that the government is exploring the possibility of allowing USDT to circulate “as another currency.” However, this is not yet a definitive decision or an automatic granting of legal tender status. The proposal is still in the technical and regulatory phase.
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USDT could be used for payments, savings and trade
According to CriptoNoticias, the planned adjustment could recognize USDT for everyday transactions, savings deposits, and business payments. Individuals and companies would thus not have to rely solely on dollar cash or traditional banking services.
USDT belongs to the group of so-called stablecoins. Its value is designed to track the US dollar, so one token typically trades at approximately one dollar. Unlike bitcoin, it is therefore not primarily used as a speculative asset with sharply volatile prices. In countries with a shortage of foreign currency or a weakening domestic currency, it can function as a digital dollar accessible through a cryptocurrency wallet.
Tether is currently the world’s largest stablecoin. USDT’s market capitalization exceeds $184 billion, making it also one of the largest cryptocurrency assets overall.
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Bolivia is running out of physical dollars
Interest in stablecoins in Bolivia is primarily related to the long-term shortage of US dollars. The dollar is commonly used in the South American country alongside the national currency, for example when importing goods, creating savings, or conducting larger business transactions.
Bolivia maintained an official exchange rate since 2011 at 6.86 bolivianos per dollar for purchase and 6.96 bolivianos for sale. However, the lack of foreign exchange reserves gradually meant that the central bank was unable to meet demand for dollars.
A parallel exchange market therefore expanded in the country, where the dollar was sold significantly more expensively than according to the official rate. In June 2026, after fifteen years of fixed currency peg to the dollar, the government abandoned it and moved to a more flexible exchange rate regime. The new rate at the time of the change was around 9.73 bolivianos per dollar.
It was precisely the difference between the official and actually available price of the dollar that strengthened demand for digital alternatives. Users can obtain USDT through cryptocurrency platforms or by trading directly with each other, without needing dollar banknotes.
Stablecoin is therefore increasingly used in Bolivia not only as a way to protect savings from the weakening of the boliviano, but also for payments, receiving money from abroad, or paying for imported goods.
From cryptocurrency ban to integration into banks
The potential inclusion of USDT in the payment system would represent another significant turnaround in Bolivia’s approach to cryptocurrencies. Digital assets were banned in the country until June 2024, when the central bank lifted the ban.
Subsequently, the volume of cryptocurrency transactions began to grow rapidly. According to data from the Bolivian central bank, the value of transactions conducted through monitored electronic channels and tools for virtual assets rose from $46.5 million in the first half of 2024 to $294 million in the same period of 2025. The increase thus exceeded 530 percent.
The new government of President Rodrigo Paz Pereira, who took office in November 2025, wants to go even further. His administration announced that it intends to gradually integrate digital assets into the formal financial system.
Thanks to this, banks could offer products linked to cryptocurrencies, such as accounts denominated in stablecoins, payment cards, or loans denominated in digital assets. Minister Espinoza stated in November that the government wants to initiate integration precisely through stablecoins.
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Anti-money laundering rules are an obstacle
However, the potential expansion of USDT payments will require detailed regulation. Espinoza particularly emphasized the need for strong controls against money laundering and terrorist financing.
Bolivia is still on the grey list of the Financial Action Task Force FATF. Countries whose systems for combating money laundering and terrorist financing show strategic deficiencies and are subject to increased international oversight are placed on it. FATF kept Bolivia among monitored jurisdictions in June 2026.
The government will therefore have to address issues such as user verification, oversight of cryptocurrency service providers, and how suspicious transactions will be reported to authorities. Only then could USDT become a regular part of the official payment environment.
Billions of dollars have already flowed through cryptocurrencies
The scale of cryptocurrency use in Bolivia is according to analytics firm Chainalysis substantially larger than shown by transactions recorded only by domestic financial institutions.
In the period from July 2024 to June 2025, the estimated value of cryptocurrency transactions associated with Bolivia reached $14.8 billion. The country thus ranked among the more significant cryptocurrency markets in Latin America, despite having a substantially smaller economy than Brazil, Argentina, or Mexico.
Chainalysis data includes broader activity recorded on blockchains, while central bank statistics track only selected transactions conducted through regulated electronic channels. The two figures therefore cannot be directly compared.
Nevertheless, they show the same trend: for some Bolivian residents, digital assets are no longer just an investment. They are becoming a practical financial tool that replaces hard-to-access dollars.
The decision may influence other countries in the region
If Bolivia actually integrates USDT into the national payment system, it will be one of the most significant examples of official stablecoin adoption in Latin America. Unlike El Salvador, which previously bet on bitcoin, the Bolivian model would be based primarily on demand for a stable digital alternative to the US dollar.
The introduction of USDT alone will not solve the shortage of foreign exchange reserves or the structural problems of the Bolivian economy. However, it could make it easier for residents and companies to access dollar value, make some payments and transfers cheaper, and bring part of the already existing cryptocurrency market under regulatory oversight.
The final form of the rules or the date of possible launch are not yet known. However, the debate itself shows how quickly the position of stablecoins is changing. In Bolivia, which banned cryptocurrency transactions just two years ago, USDT may now become a common part of payments, trade, and savings.
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