Minister of Economy and Public Finance Jose Gabriel Espinoza said at the press conference that the government is considering a regulatory framework that would allow USDT to circulate as an ordinary currency alongside the Bolivian boliviano and the US dollar. According to local media, the framework, which is still under review, if adopted, will recognize USDT in everyday transactions, including payments, savings and trade, without relying solely on cash or the traditional banking system.
Espinoza noted that any implementation would require a robust regulatory framework and strong anti-money laundering measures. Because Bolivia is on the gray list of the Financial Action Task Force (FATF), which identifies countries under increased surveillance due to deficiencies in preventing money laundering and terrorist financing.
The proposal is part of Bolivia's opening up to digital assets after it lifts its long-standing cryptocurrency ban in 2024. The administration of President Rodrigo Paz Pereira, who took office at the end of 2025, had committed to integrating digital assets into the official financial system and paving the way for banks to offer crypto products and services, including stablecoin-based accounts. USDT remains the world's largest stablecoin with a market value exceeding $184 billion, according to market data.
Bolivia's stablecoin initiative comes in the shadow of a long shortage of the US dollar, which is widely used alongside the country's national currency, the boliviano. The country maintained an official exchange rate of 6.86 bolivianos for purchases and 6.96 bolivianos for sales from 2011 until the beginning of this year. However, increasing pressure on foreign exchange reserves forced the government to abandon this long-term fixed exchange rate. The resulting dollar shortage fed the growth of a parallel foreign exchange market in which the dollar traded at a high premium to the official rate.
The widening gap between official and parallel exchange rates has increased demand for dollar-denominated alternatives such as USDT, which are increasingly used for payments. Bolivia ranked high for crypto adoption in Latin America in industry analysis, reaching total transaction volume of $14.8 billion in the 12-month period.