Bolivia plans to add Tether’s USDT stablecoin to its national payments system, marking another step in the country’s move from banning crypto transactions to allowing regulated use of digital assets.
Economy Minister José Gabriel Espinoza said in a press conference on Monday that the government was evaluating whether USDT could circulate alongside the Boliviano, the country’s fiat currency, and the US dollar.
The proposal remains under technical review and the government has not published implementing rules or granted legal tender stable currency status, local newspaper La Razón reported.
Officials are developing a framework for banks, digital wallets and payment providers, according to Espinoza. Any rollout would require stricter anti-money laundering controls as Bolivia remains on the Financial Action Task Force’s gray list, subjecting the country to increased scrutiny over gaps in its financial crime regime.
The proposal comes amid a surge in crypto adoption after Bolivia’s central bank lifted restrictions on transactions in June 2024. Data from the central bank shows that crypto transaction volume fell from $46.5 million in the first half of 2024 to $294 million during the same period last year. Total trading volume increased by 630% after restrictions were lifted, the central bank said.
