Bolivia weighs adding Tether's USDT to its national payments system
AI-assisted summary based on the linked source. Verify market-moving details at the original publisher before acting.
Bolivia is exploring the integration of Tether's USDT stablecoin into its national payments system as a regulated currency option alongside the boliviano and the U.S. dollar. This consideration marks a notable policy shift from the country’s previous ban on crypto transactions toward facilitating regulated use of digital assets. Economy Minister José Gabriel Espinoza indicated the government is technically reviewing the proposal, with frameworks being developed for banks, digital wallets, and payment providers to support USDT circulation.
The move comes in the context of rapidly increased crypto usage in Bolivia, where transaction volumes surged from $46.5 million in the first half of 2023 to $294 million in the same period of 2024, representing a 630% increase following the central bank’s removal of transaction restrictions in mid-2024. This rise is driven in part by businesses and consumers seeking alternatives amid a scarcity of U.S. dollars, especially after Bolivia transitioned from a fixed dollar peg to a floating exchange rate earlier this year.
Despite interest in officially adopting USDT, Bolivia has not granted it legal-tender status, and any future deployment will require stringent anti-money laundering (AML) controls due to the country’s status on the Financial Action Task Force (FATF) grey list. This increased monitoring highlights ongoing concerns about weaknesses in Bolivia’s financial crime prevention framework, which the government must address to gain broader acceptance of stablecoins.
The potential adoption of USDT builds on initiatives such as state-owned Banco Unión enabling customers to buy USDT through its Yasta wallet, mainly for international payments and remittances, and plans announced by state energy company YPFB to use crypto for energy imports. Bolivia’s central bank has also sought regulatory guidance from El Salvador, reflecting a broader intent to establish a formal structure for digital assets within the national economy.