TLDR
- Bolivia is evaluating a regulatory framework to let Tether’s USDT circulate as an official payment currency alongside the boliviano and US dollar
- The push is driven by a prolonged shortage of US dollars after Bolivia abandoned its long-standing exchange rate peg
- Local banks Banco Unión and Banco FIE already offer USDT services, meaning banking infrastructure is in place
- Bolivia recorded $14.8 billion in crypto transaction volume over a 12-month period in Chainalysis’ 2025 Latin America report
- If adopted, Bolivia would become the first Latin American country to formally integrate USDT alongside fiat currencies
Bolivia is weighing a plan to make Tether’s USDT an officially recognized payment currency, placing it alongside the boliviano and the US dollar in its national payments system.
Bolivia Considers Integrating USDT Into National Payment System
According to CriptoNoticias, Bolivia’s Economy Minister José Gabriel Espinoza said the government is technically evaluating whether to incorporate USDT into the national payment system, allowing it to circulate… pic.twitter.com/KqEdecODO0
— Wu Blockchain (@WuBlockchain) July 13, 2026
Economy and Public Finance Minister Jose Gabriel Espinoza confirmed the government is assessing a regulatory framework at a press conference on Monday. He said USDT could be allowed to circulate “as just another currency” for everyday use, including payments, savings, and trade.
The framework is still under review and has not been formally adopted. No legislative confirmation or Central Bank of Bolivia approval has been announced yet.
Dollar Shortage Driving the Push
Bolivia has been under severe foreign currency pressure for several years. Falling gas production has cut export revenues, draining dollar reserves and leaving businesses and importers short of hard currency.
Bolivia maintained an official exchange rate of 6.86 bolivianos per US dollar for nearly a decade until earlier this year. When the peg was abandoned, a parallel black-market dollar trade emerged, with the dollar trading at a steep premium to the official rate.
That gap has pushed more Bolivians toward dollar-denominated alternatives. USDT has filled part of that role, with retail stores already accepting it for everyday goods including dairy products and chocolate, as documented by Tether CEO Paolo Ardoino in June 2025.
The state energy company YPFB was authorized to accept crypto payments for fuel imports as early as March 2025, marking the government’s first formal step in this direction.
Banking Infrastructure Already in Place
Two Bolivian banks, Banco Unión and Banco FIE, already offer USDT-related services. That means much of the infrastructure needed for wider adoption exists.
Official status would formalize what is already happening in practice. It could lower transaction costs, speed up remittances, and provide a trackable alternative to black-market dollar trading.
Bolivia lifted its longstanding ban on cryptocurrencies in 2024. Since President Rodrigo Paz Pereira took office in late 2025, the government has pledged to integrate digital assets into the formal financial system, including allowing banks to offer crypto-related products.
Any rollout would need strong anti-money laundering safeguards. Bolivia remains on the Financial Action Task Force grey list, which flags countries under increased monitoring for gaps in preventing money laundering and terrorist financing.
Tether engaged KPMG in March 2026 to conduct a full audit of its reserves, which exceed $184 billion. That move is widely seen as an effort to build the institutional credibility needed for sovereign-level integration.
Bolivia recorded $14.8 billion in total crypto transaction volume over a 12-month period in Chainalysis’ 2025 Latin America report, ranking it among the region’s more active markets.
If the framework is adopted, Bolivia would be the first Latin American country to formally recognize USDT as a payment currency alongside fiat.
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