Bolivia Embraces USDT as Government Endorses Crypto Banking

Bolivia is set to integrate stablecoins into its formal banking landscape, a move likely to transform saving and payment methods across the nation. Following increased cryptocurrency adoption amid economic pressures, the government has permitted banks to provide accounts, custodial services, and payment solutions linked to stablecoins like USDT. Economy Minister Jose Gabriel Espinoza confirmed the announcement, revealing that institutions such as Banco Bisa have already started offering USDT custody and transfer services. Reports indicate that Bolivian crypto transactions surged last year, with growth exceeding 500% and activity reaching $294 million in just the first half of 2025. This shift aims to address physical US dollar shortages and the appreciation challenges of the local currency. Daily expenditures and savings are increasingly being denominated in USDT, with various retailers now accepting stablecoin payments. As the government focuses on regulated crypto integration, banks may also develop savings products and loan options tied to stablecoins. However, hurdles like limited banking access and internet connectivity remain obstacles. While the plan does not designate stablecoins as legal tender, it allows banks to offer crypto-related services within a regulated framework, requiring further consumer education and oversight to ensure user safety. The expected rollout will be closely monitored for its impact on transaction volumes and bank participation, positioning Bolivia as a potential model for other nations facing currency issues. Despite the integration of stablecoins, the underlying economic challenges will need comprehensive government strategies to fully address inflation and dollar accessibility.