Bolivia’s government is considering new regulations that would grant Tether‘s USDT stablecoin official status as an accepted payment method, placing it alongside the national currency, the bo
Bolivia’s government is considering new regulations that would grant Tether‘s USDT stablecoin official status as an accepted payment method, placing it alongside the national currency, the boliviano, and the US dollar within the nation’s payment ecosystem.
Speaking at a press conference, Economy and Public Finance Minister Jose Gabriel Espinoza announced that authorities are conducting a technical review of whether USDT can be adopted into the national payment system. Espinoza stated that USDT could function similarly to existing currencies, facilitating everyday transactions, commercial payments, and savings accounts.
Espinoza noted that the government is technically evaluating how USDT could be incorporated into the country’s payment system, allowing for its use in a range of financial activities.
The proposal is currently under internal review. No legislation or Central Bank of Bolivia approval has been finalized or made public regarding this initiative.
Bolivia continues to struggle with a shortage of US dollars, following years of declining natural gas exports and economic uncertainty. The country recently ended its long-held fixed exchange rate of 6.86 bolivianos per dollar, leading to the emergence of an unofficial market with significantly higher dollar prices than official rates.
As the gap between official and street exchange rates widened, residents increasingly turned to dollar-pegged alternatives such as USDT. In recent months, merchants in Bolivia have begun accepting USDT for routine purchases including groceries and confectionery items. Tether CEO Paolo Ardoino observed this trend in June 2025.
Earlier in March 2025, YPFB, Bolivia’s state-owned petroleum company, received government approval to accept cryptocurrency payments for fuel shipments, marking the administration’s first move to formally recognize digital assets.
Bolivia’s banking sector is already adapting to the growing use of stablecoins. Banco Unión and Banco FIE, two leading domestic banks, have launched USDT-related services, providing an established foundation for wider stablecoin adoption in the financial system.
Granting USDT official payment status could legitimize widespread stablecoin use, reduce transaction fees, and improve transparency in exchange markets, particularly when compared to informal dollar trading in the shadow economy.
The Bolivian government reversed a nationwide ban on crypto assets in 2024. Following President Rodrigo Paz Pereira’s inauguration at the end of 2025, the administration committed to integrating digital assets into regulated financial channels by permitting banks to offer crypto-based products.
To ensure security, authorities would need to enforce strict measures to prevent money laundering and terrorism financing. Bolivia remains under Financial Action Task Force enhanced monitoring for gaps in its anti-financial crime regime.
Tether, the issuer of USDT, appointed KPMG in March 2026 to conduct a reserve audit covering over $184 billion in assets. Industry analysts view this as a move to prepare Tether for compatibility with formal government regulations.
Chainalysis, a blockchain analytics firm, reported that Bolivia recorded $14.8 billion in cryptocurrency transactions over a 12-month period in its 2025 Latin America overview. This positions Bolivia among the region’s most significant crypto markets.
If Bolivia finalizes official approval for USDT, it would become the first country in Latin America to formally add the stablecoin to its payment system, allowing transactions alongside traditional government-issued money.
Mini dictionary: Tether (USDT) is a blockchain-based stablecoin whose value is pegged to the US dollar. It is widely used globally to provide a digital equivalent of cash, often serving as an alternative in countries facing local currency instability.
CountryOfficial Status of USDTAnnual Crypto Volume (12 months, 2025)BoliviaUnder consideration$14.8 billionOther Latin American countriesNo official recognitionVariesThe post Bolivia weighs official approval of USDT as payment method amid currency shortage appeared first on COINTURK NEWS.
