Bolivia Considers Recognizing USDT for Payments Amid Dollar Shortage

Bolivia is evaluating integrating Tether’s USDt into its national payments system, a move that could mark one of Latin America’s most significant stablecoin adoption initiatives as the country grapples with a persistent shortage of US dollars.

Economy and Public Finance Minister Jose Gabriel Espinoza told a press conference on Monday that the government is assessing a regulatory framework that would allow USDT to circulate “as just another currency,” alongside the boliviano and the US dollar. 

According to the Spanish news outlet CriptoNoticias, the framework is still under review and, if adopted, would recognize USDT for everyday transactions, including payments, savings and trade, without relying exclusively on cash or the traditional banking system.

Espinoza said any rollout would require a robust regulatory framework and strong anti-money laundering safeguards because Bolivia remains on the Financial Action Task Force (FATF) grey list, which identifies jurisdictions under increased monitoring for deficiencies in preventing money laundering and terrorist financing.

Source: EL DEBER

The proposal is part of Bolivia’s broader embrace of digital assets following the lifting of its longstanding ban on cryptocurrencies in 2024. Since taking office in late 2025, President Rodrigo Paz Pereira’s administration has pledged to integrate digital assets into the formal financial system, paving the way for banks to offer crypto-related products and services, including stablecoin-based accounts.

USDT is the world’s largest stablecoin, with a market capitalization exceeding $184 billion, according to CoinMarketCap.

Related: USDT wins payments, USDC wins DeFi as stablecoins diverge: Dune

Dollar shortage fuels stablecoin push

Bolivia’s stablecoin initiative comes as the country grapples with a prolonged shortage of US dollars, which are widely used alongside the national currency, the boliviano.

As Reuters reported, Bolivia maintained an official exchange rate of 6.86 bolivianos per US dollar for purchases and 6.96 for sales from 2011 until earlier this year, when mounting pressure on foreign exchange reserves forced the government to abandon the long-standing peg. The resulting dollar shortage fueled the expansion of a parallel foreign exchange market, where the dollar traded at a steep premium to the official rate.

The widening gap between the official and parallel exchange rates has boosted demand for dollar-denominated alternatives, including stablecoins such as USDT, which have increasingly been used for payments.

Bolivia ranked highly in Chainalysis’ 2025 evaluation of crypto adoption across Latin America, with $14.8 billion in total transaction volume over a 12-month period.

Related: Crypto Biz: How stablecoins found their niche