Bolivia weighs adding USDT to national payments amid dollar shortage

Bolivia’s government announced on Monday that it is drafting a regulatory framework to allow Tether’s USDT stablecoin to circulate “as just another currency” alongside the boliviano and the US dollar, a move aimed at easing the country’s chronic dollar shortage【1】.

Policy push and market backdrop

Economy and Public Finance Minister José Gabriel Espinoza said the proposal would let individuals and businesses use USDT for everyday payments, cross‑border trade and remittances, directly addressing the scarcity of foreign currency that has plagued Bolivia since the central bank abandoned its decades‑old dollar peg in 2026【1】【2】. The peg, fixed at roughly 6.9 bolivianos per dollar since 2011, was scrapped as reserves ran low, forcing a parallel market where the dollar trades at a steep premium【1】.

Stablecoin usage has surged in response. Chainalysis ranked Bolivia among the highest‑adopting Latin American economies in 2025, recording $14.8 bn of crypto transaction volume over a 12‑month span【1】. After the central bank lifted restrictions in mid‑2024, on‑chain stablecoin volumes jumped, with total crypto transaction volume reaching $430 m in the following year【4】. USDT and USDC have become de‑facto substitutes for hard dollars, especially for fuel imports and commercial payments.

Regulatory and operational hurdles

Any rollout will require a “robust regulatory framework and strong anti‑money‑laundering safeguards,” as Bolivia remains on the Financial Action Task Force (FATF) grey list for deficiencies in AML/CTF controls【1】. The government’s approach follows a broader digital‑asset strategy under President Rodrigo Paz Pereira, which includes allowing banks to offer crypto‑linked savings accounts, credit cards and loans【2】.

The proposal is still under review, and no timeline has been set for implementation. Should the framework be adopted, USDT would be treated on par with the boliviano and the US dollar, potentially expanding the formal financial system’s reach to users who currently rely on on‑chain wallets to bypass cash shortages.

What to watch

• Regulatory approval – Publication of the final framework by Bolivia’s finance ministry.
• On‑chain USDT flows – Increases in stablecoin transaction volume from Bolivian wallets, especially in the $10 k–$100 k range.
• FX market reaction – Movements in the BOB/USD reference rate, particularly any narrowing of the premium between official and parallel rates.

Bolivia’s move could become a benchmark for other dollar‑constrained economies seeking stablecoin solutions, but its success hinges on meeting FATF‑related compliance standards and delivering a transparent, enforceable regulatory regime.