Bolivia’s Digital Currency Bet: Navigating Volatility with Stable Solutions

Bolivia has made a significant move to incorporate cryptocurrencies and stablecoins into its official banking sector, ending a ten-year ban on digital currencies. On November 26, 2025, Economy Minister Jose Gabriel Espinoza revealed that banks will now be allowed to hold cryptocurrencies for clients and provide crypto-related services such as savings accounts, credit cards, and loans. This policy, introduced as a response to persistent inflation, a shortage of US dollars, and the drive for economic modernization, places Bolivia as

in the region.

This change in direction comes after the June 2024 repeal of a 2020 ban on crypto transactions, which sparked a rapid increase in usage. From July 2024 to June 2025, Bolivians conducted $14.8 billion in stablecoin and crypto transactions,

as reported by Chainalysis. Transaction volumes soared by more than 530%, in the first half of 2024 to $294 million in the first half of 2025. This surge is largely attributed to Bolivians turning to stablecoins like Tether’s USDT to protect themselves from the boliviano’s decline, which over the year leading up to October 2025.

Both businesses and government agencies are adjusting quickly. YPFB, the state-owned energy firm, has announced intentions to use crypto for importing energy, while carmakers such as Toyota and BYD

in September 2025 to bypass the lack of US dollars. The government’s strategy , taking cues from El Salvador’s adoption and its regulatory approach. . Espinoza highlighted that cryptocurrencies are beyond the control of any single nation, making it vital to "acknowledge and leverage them" for economic stability .

The adoption of stablecoins is also viewed as a way to boost financial inclusion. With 86% of recent crypto transactions involving individuals rather than companies, the new policy is designed to give unbanked citizens access to stable, dollar-linked assets

. Banco Bisa, a major bank, has already introduced stablecoin custody solutions, and easing restrictions on the local currency. Nevertheless, there are still obstacles, to address anti-money laundering, tax issues, and public awareness.

Although the initial rollout centers on stablecoins, the government has not yet granted legal tender status to more volatile cryptocurrencies like Bitcoin. Espinoza stated that any future expansion will depend on regulatory progress and the outcomes of this first stage

. At the same time, Bolivia’s Central Bank is collaborating with El Salvador to create risk assessment models and blockchain analysis tools, to balance innovation with regulatory oversight.

This initiative highlights a wider global trend where countries are turning to crypto to address economic uncertainty. For Bolivia, embracing stablecoins is both a practical solution to current challenges and a bold step toward modernizing its financial sector.