Bolivia plans to integrate 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 U.S. dollars.
Minister of Economy and Public Finance, José Gabriel Espinoza said At a press conference on Monday, the government is evaluating a regulatory framework that would allow USDT to circulate “as just another currency,” alongside the Boliviano and the US dollar.
According to Spanish media outlet CriptoNoticias, the framework is still under review and, if adopted, it recognize USDT for everyday transactions, including payments, savings and commerce, without relying exclusively on cash or the traditional banking system.
Espinoza said any deployment would require a strong regulatory framework and strong anti-money laundering safeguards, as Bolivia remains on the Financial Action Task Force (FATF) gray list, which identifies jurisdictions subject to increased monitoring to detect deficiencies in preventing money laundering and terrorist financing.
Source: THE DUTY
The proposal is part of Bolivia’s broader adoption of digital assets after lifting its long-standing ban on cryptocurrencies in 2024. taking office at the end of 2025the administration of President Rodrigo Paz Pereira has committed to integrating digital assets into the formal financial system, pave 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 surge
Bolivia’s stablecoin initiative comes as the country grapples with a prolonged shortage of US dollars, widely used alongside the national currency, the Boliviano.
Like Reuters reportedBolivia maintained an official exchange rate of 6.86 bolivianos to the U.S. dollar for purchases and 6.96 for sales from 2011 until earlier this year, when growing pressure on foreign exchange reserves forced the government to abandon the long-standing peg. The resulting shortage of dollars fueled the expansion of a parallel foreign exchange market, where the dollar traded at a large premium to the official rate.
The growing gap between official and parallel exchange rates has driven demand for dollar-denominated alternatives, including stablecoins such as USDT, which are increasingly used for payments.
Bolivia ranked high in Chainalysis’ 2025 assessment of crypto adoption in Latin America, with a total transaction volume of $14.8 billion over a 12-month period.
