Bolivia Eyes Tether USDT for National Payments System

Bolivia's government is considering adding Tether's USDT stablecoin to its national payments system, a significant policy shift for a country that banned crypto transactions less than two years ago. Economy Minister José Gabriel Espinoza announced this at a press conference on Monday.

The proposal would allow USDT to circulate alongside the boliviano and the US dollar. This comes after crypto transaction volumes surged 630% following the central bank's lifting of restrictions in June 2024, reaching $430 million from $46.5 million in the first half of 2024.

The increased demand for digital dollars is driven by Bolivia's shift to a floating exchange rate earlier this year, which has created dollar scarcity and increased the need for stable value storage outside the boliviano.