Bolivia weighs adding Tether's USDT to its national payments system

• Bolivia is evaluating a framework to integrate USDT into its national payments system as a regulated alternative to the boliviano and U.S. dollar.
• Crypto usage has spiked in the country, with transaction volumes hitting $430 million in the year after the central bank removed restrictions in mid-2024.
• Official adoption will require rigorous anti-money laundering controls because Bolivia remains on the Financial Action Task Force's grey list.

Bolivia is considering adding Tether's USDT stablecoin to its national payments system, marking another step in the country's shift from banning crypto transactions to allowing regulated digital asset use.

Economy Minister José Gabriel Espinoza said at a press conference on Monday that the government is evaluating whether USDT could circulate alongside the boliviano, the country’s fiat currency, and the U.S. dollar.

The proposal remains under technical review and the government has not published implementation rules or granted the stablecoin legal-tender status, local news outlet La Razón reported.

Officials are developing a framework for banks, digital wallets and payment providers, according to Espinoza. Any rollout would require stronger anti-money laundering controls as Bolivia remains on the Financial Action Task Force's grey list, which subjects the country to increased monitoring over shortcomings in its financial crime regime.

The proposal comes amid a sharp rise in crypto adoption after Bolivia's central bank lifted restrictions on transactions in June 2024. Central bank data shows that crypto transaction volume climbed from $46.5 million in the first half of 2024 to $294 million during the same period last year. Total transaction volume rose 630% after restrictions were removed, the central bank has said.

Demand has increased as businesses and consumers look for alternatives to scarce U.S. dollars in the country. Bolivia ended its long-standing fixed dollar peg and moved to a floating exchange rate earlier this year.

State energy company YPFB announced plans last year to use crypto for energy imports, while Bolivia's central bank has also looked to El Salvador for help with its crypto regulatory framework.

State-controlled Banco Unión and its Yasta wallet start letting customers buy USDT through EFY Finance in April for international payments and remittances.

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