USDT Usage Surges in Bolivia Amid 24% Inflation Eroding Trust in Local Currency

Dealerships for Toyota, BYD, and Yamaha in Bolivia have started taking Tether’s

stablecoin as a method of payment for cars, signaling a major step forward for crypto use in the country. CEO Paolo Ardoino confirmed the news on social media, describing USDT as a “digital dollar” designed for emerging markets. This adoption comes as Bolivia faces its highest inflation in four decades, hitting 24.15% in August 2025—double the rate from January. Over the last ten years, Bolivia’s foreign reserves have plummeted by 98%, dropping from $12.7 billion in 2014 to only $171 million as of August 2025. This sharp decline has worsened local currency volatility, leading more businesses to consider alternatives title1 [ 1 ].

USDT’s arrival in Bolivia’s auto market came after the country removed its longstanding ban on crypto in June 2024. This regulatory change enabled banks to handle

and stablecoin payments, fueling growth in adoption. Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), the state oil and gas company, was among the first major corporations to accept crypto for fuel imports in March 2025 to address the shortage of foreign currency. By September 2025, crypto transaction value in Bolivia had soared 630% from a year earlier, totaling $294 million just in the first half of the year title2 [ 2 ].

BitGo, a crypto security company, verified the first car sale in Bolivia paid with USDT—a

transaction completed in late September. Car dealerships now advertise USDT as a “simple, quick, and secure” payment choice, reflecting a rise in public confidence in stablecoins. In October 2024, Banco Bisa, Bolivia’s central bank, introduced custodial services for USDT, further legitimizing its use. Many businesses—from airport retailers to import firms—have also embraced USDT to protect against the boliviano’s decline, with some now listing prices directly in stablecoin title3 [ 3 ].

The ongoing economic challenges in Bolivia have hastened the move toward digital currencies. The boliviano has lost almost half its value on the black market this year, forcing families and companies to look for more stable options. Even as the government keeps the official exchange rate artificially low, the widening gap with the black market rate has made crypto more essential. Tether’s USDT, now valued at $172 billion in market cap, is increasingly seen as a safeguard for purchasing power—especially in a country where 60% of people remain outside the banking system title4 [ 4 ].

The uptake of USDT in Bolivia mirrors a wider trend across Latin America, where economic volatility is fueling stablecoin popularity. Countries like Argentina, Brazil, and Colombia are experiencing similar changes, with

and USDT making up more than 90% of exchange transactions in certain areas. Bolivia’s Central Bank has even formed a partnership with El Salvador to study new regulations for digital assets, inspired by El Salvador’s move to recognize Bitcoin as legal tender in 2021. Analysts predict that crypto could handle as much as 10% of Bolivia’s retail payments in just a few years title5 [ 5 ].

Political events will play a big role in Bolivia’s crypto path. The October 19 run-off election between Rodrigo Paz Pereira and Jorge “Tuto” Quiroga will determine whether the country pursues more blockchain-driven transparency or takes a more cautious approach. Paz Pereira is in favor of using blockchain to fight corruption, while Quiroga’s position is less clear. The election’s outcome will affect rules and investor trust in Bolivia’s digital asset sector title6 [ 6 ].

Tether’s growth in Bolivia is part of its global push to cement USDT’s leading status. The company has also revealed plans for USA₮, a stablecoin regulated in the U.S. and compliant with the GENIUS Act, and has made large investments in gold supply chain initiatives. CEO Ardoino has called gold a “natural Bitcoin,” highlighting Tether’s ambition to merge traditional resources with digital finance. These developments show a wider pattern of stablecoins entering world trade, especially in regions coping with weak fiat currencies title7 [ 7 ].