Bolivia Weighs Allowing USDT as Regulated Payment

Bolivian officials are reviewing whether to add the dollar‑pegged stablecoin USDT to the country’s regulated payment system alongside the boliviano and the U.S. dollar. The finance minister described the current state as “lifted a prohibition without a clear regulatory framework.” A technical review of how to integrate stablecoins is ongoing. Cryptoassets are authorized in Bolivia but carry no legal‑tender status.

Electronic payment channels for virtual assets opened recently and activity increased sharply. Virtual‑asset operations rose more than 630% year‑on‑year to about $430 million. First‑half volume increased from $46.5 million in the first half of 2024 to $294 million in the first half of 2025.

Authorities note that when dollars are scarce or local currency comes under pressure, individuals often turn first to dollar‑linked stablecoins. Merchants and businesses may accept them next, banks can provide access, and governments sometimes formalize the arrangement once use is widespread.

The International Monetary Fund reports that in countries with currency depreciation, high inflation and restricted access to foreign exchange, residents use dollar‑stablecoins to protect savings and to pay foreign suppliers. In Nigeria, large naira depreciation and foreign‑exchange limits drove demand for stablecoins. Nigeria received roughly $59 billion in crypto‑asset inflows between July 2023 and June 2024, accounting for about 60% of stablecoin inflows into sub‑Saharan Africa since 2019. When regulators limited banks’ links to exchanges in 2021, much trading moved to peer‑to‑peer channels.

The Bank for International Settlements describes stablecoins as lowering barriers to holding dollar‑denominated value and uses the term “stealth dollarization” to describe the process in emerging markets. The BIS warns that interest‑bearing stablecoins could compete with domestic bank deposits in high‑inflation countries and that dollar‑denominated tokens can weaken the transmission of domestic monetary policy if savings and invoices shift outside central bank control.

Tether, the issuer of USDT, reported token‑related liabilities near $183.4 billion in its first‑quarter 2026 attestation, supported in part by about $141 billion in direct and indirect U.S. Treasury bills. Regulators warn that a run on a major stablecoin, sanctions against an issuer, opaque reserve management, or concentration of assets offshore could create financial instability for countries that rely on those tokens for payments and savings.

One regulatory path is to channel stablecoin access through licensed banks and payment processors, integrating private tokens into the formal banking system. An alternative is to restrict bank and exchange access to stablecoins, which can push demand into peer‑to‑peer or offshore channels and reduce regulators’ visibility into transactions.

Stablecoin use requires only a smartphone, a wallet and merchant acceptance, enabling rapid adoption before formal rules are set. Authorities are conducting technical reviews while real‑world use continues to grow.