Bolivia weighs adding Tether USDT to national payments system

Bolivia’s economy ministry announced on July 13 that the government is formally reviewing a framework to allow Tether’s USDT stablecoin to circulate alongside the boliviano and U.S. dollar, a move that could institutionalise crypto payments in a country where transaction volume surged 630% after the central bank lifted its ban in mid‑2024.

Policy push after a crypto boom

The proposal, outlined by Economy Minister José Gabriel Espinoza, is still under technical review and does not yet grant USDT legal‑tender status, but it signals a shift from Bolivia’s previous outright ban on crypto transactions. The move follows a dramatic rise in crypto activity: the central bank reported that transaction volume climbed from $46.5 million in the first half of 2024 to $294 million in the same period a year earlier, a 630% increase after restrictions were removed [1]. In the year following the lift, total crypto transaction volume reached $430 million [1].

Implementation hurdles and AML focus

Any rollout will require a robust anti‑money‑laundering (AML) regime, as Bolivia remains on the Financial Action Task Force’s grey list, subjecting it to heightened monitoring for financial‑crime shortcomings [1]. Officials are drafting rules for banks, digital wallets and payment providers, and the framework will need to align with FATF expectations while offering a regulated alternative to the boliviano and the U.S. dollar.

Market context

USDT’s price has remained stable at its $1.00 peg, with negligible intraday movement, underscoring its role as a dollar‑linked stablecoin. Bolivia’s consideration adds to a growing list of jurisdictions exploring official stablecoin use, following similar steps in El Salvador and other emerging markets. The country also ended its long‑standing fixed dollar peg earlier this year, moving to a floating exchange rate, which has heightened demand for alternative dollar‑denominated assets [1].

What to watch

• Publication of the detailed regulatory framework and any timeline for legal‑tender status.
• Bolivia’s FATF grey‑list status and any related AML policy updates.
• Subsequent volume trends in USDT transactions through local banks and wallets.

Bolivia’s evaluation of USDT could cement stablecoins as a mainstream payment method in a region seeking dollar alternatives, but the outcome hinges on the government’s ability to meet international AML standards while delivering a functional, regulated ecosystem.