Bolivia Considers Integrating Tether's USDT Stablecoin into National Payment System

Bolivia is exploring the integration of Tether's USDT stablecoin into its national payment system as a response to a persistent shortage of physical U.S. dollars.

The central bank reported over $75 million in virtual asset usage in the first four months after lifting a decade-old crypto ban in 2024.

The proposed model channels crypto transactions through Bolivia's existing banking system, with licensed financial institutions acting as intermediaries and converting between the boliviano and USDT under central bank oversight.

Operational questions remain substantial, including settlement timing, custody arrangements, liquidity requirements for banks holding USDT reserves, and consumer protection rules.