Bolivia weighs adding Tether’s USDT to its national payments system

Bolivia is considering adding Tether’s USDT stablecoin to its national payments system, marking another step in the country’s shift from banning crypto transactions to allowing regulated digital asset use.

Economy Minister José Gabriel Espinoza said at a press conference on Monday that the government is evaluating whether USDT could circulate alongside the boliviano, the country’s fiat currency, and the U.S. dollar.

The proposal remains under technical review and the government has not published implementation rules or granted the stablecoin legal-tender status, local news outlet La Razón reported.

Officials are developing a framework for banks, digital wallets and payment providers, according to Espinoza. Any rollout would require stronger anti-money laundering controls as Bolivia remains on the Financial Action Task Force’s grey list, which subjects the country to increased monitoring over shortcomings in its financial crime regime.

The proposal comes amid a sharp rise in crypto adoption after Bolivia’s central bank lifted restrictions on transactions in June 2024. Central bank data shows that crypto transaction volume climbed from $46.5 million in the first half of 2024 to $294 million during the same period last year. Total transaction volume rose 630% after restrictions were removed, the central bank has said.