Bolivia Embraces Crypto Stablecoin During US Dollar and Gas Shortages

In a significant step for stablecoin adoption, Tether’s USDT stablecoin is emerging as a practical solution in Bolivia, where economic challenges like dollar and gas shortages have sparked unrest. Paolo Ardoino, CEO of Tether, recently shared images on X showcasing retail items priced in USDT, highlighting the stablecoin’s growing role in everyday commerce. This development marks a milestone for Tether, the issuer of the dollar-pegged USDT, which boasts a total market value exceeding $150 billion. As Bolivians navigate turbulent economic times, USDT’s integration into local markets signals a shift toward digital currencies in Latin America.

Bolivia’s economic difficulties, including limited access to U.S. dollars and fuel shortages, have fueled public unrest and created fertile ground for stablecoin adoption. At Duty Fly, a retail outlet in Bolivia, products are priced in USDT, with prices tied to the daily exchange rate set by the Banco Central de Bolivia and referenced through the Binance crypto exchange platform. Customers can pay in Bolivian Bolivianos or U.S. dollars, with conversions based on the USDT rate. Duty Fly, a subsidiary of Bolivia’s leading perfumes and cosmetics distributor Distribuidora Aromas, operates duty free shops at El Alto International Airport in La Paz and Viru Viru International Airport in Santa Cruz, further amplifying USDT’s visibility.

Stablecoin Adoption Rises in Bolivia

The move reflects a broader trend across Latin America, where stablecoins are gaining popularity in countries grappling with currency controls and dollar scarcity. Unlike volatile cryptocurrencies, USDT’s peg to the U.S. dollar offers stability, making it an attractive option for transactions. Ardoino described the shift as a “quietly revolutionary” change, emphasizing how digital dollars are supporting daily commerce and economic stability in Bolivia. The adoption of USDT in retail settings underscores its potential to serve as a unit of account in regions facing monetary challenges.

In October 2024, Banco Bisa, a prominent Bolivian bank, launched a custody service for USDT, enabling clients to buy, sell, and transfer the stablecoin. This service facilitates secure asset storage, family transactions, and cross-border payments, offering a regulated pathway for crypto engagement. Yvette Espinoza, a representative from Bolivia’s financial regulator, Autoridad de Supervisión del Sistema Financiero, noted that such initiatives align with efforts to integrate cryptocurrency transactions into a supervised framework. Banco Bisa’s move has likely contributed to the growing acceptance of USDT in Bolivia’s economy.

The rise of USDT in Bolivia comes at a critical time, as the country faces ongoing protests over resource shortages. By providing an alternative to scarce physical dollars, USDT offers a practical tool for businesses and consumers. Retailers like Duty Fly are setting a precedent by embracing stablecoins, potentially paving the way for broader adoption across Bolivia’s commercial landscape. As more businesses explore digital currencies, the country could see further integration of USDT or other stablecoins in response to economic pressures.