Bolivia: Transactions with cryptocurrencies increase more than 530% in the midst of monetary crisis

By Hannah Pérez

The cryptocurrency market in Bolivia experiences explosive growth due to the shortage of dollars and the difficulties of access to foreign currencies. Merchants and citizens increasingly resort to Bitcoin and USDT.

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• Transactions with cryptocurrencies in Bolivia increased more than 530% due to the crisis of access to dollars.
• Small businesses and citizens employ Bitcoin and USDT as a refuge for their savings and payment tools.
• The boom is given despite the lack of a specific regulatory framework and before the uncertain position of the government.

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The use of cryptocurrencies in Bolivia is booming in the middle of a complex scenario nationwide characterized by the difficulty of accessing foreign currencies and the instability of the local currency.

The Central Bank of Bolivia published new figures on Friday that reflect the dramatic change in the local financial landscape, where transactions made by channels and payment instruments for cryptocurrencies fired more than 530% in a year.

According to data collected by Reuterstransactions with cryptocurrencies have reached new records in Bolivia, going from Sud $ 46.5 million in the first quarter of 2024 to USD $ 294 million in the same period of 2025.

The report also revealed that monthly transactions reached an unprecedented level of USD $ 68 million in May.

The figures of the Central Bank came just after a report from Reuters which showed how more Bolivians resorted to cryptocurrency exchange platforms such as Binance already Stablecoins as Tether (USDT) –linked to the dollar– For daily payments.

Daily payments with USDT, Bitcoin and Binance

Once limited to enthusiasts and investors with a stomach for risk, cryptocurrencies have become a key element in the Bolivian economy, where from small merchants to common citizens have begun to resort to this kind of assets as an alternative to preserve the value of their savings and maintain its operations.

American dollars reserves in Bolivia have decreased dramatically to levels close to zero while inflation amounts to its highest level in 40 years and fuel shortage causes long lines in gas stations. Given this environment, cryptocurrencies have begun to gain great prominence in the South American country.

One of the key findings mentioned by Reuters It is the emerging role of small businesses in market transformation. Many merchants have begun Receive payments Bitcoin and Stablecoins Like USDTfacilitating exports and imports that, otherwise, would be unfeasible given the lack of dollars.

In the Bolivian city of Cochabamba, ATMs allow to change Bolivians for cryptocurrencies, certain shops offer discounts if payments are made in Bitcoin And the logo of Binance It is observed in the facades of restaurants and other establishments as part of the accepted payment mechanisms, according to the news media.

Bolivians save in cryptocurrencies

Citizens also resort to cryptocurrencies as savings mechanisms and value shelter, especially when the country’s currency has lost half of its value in the black market this year, adds coverage. Although the official exchange rate has remained artificially stable thanks to government intervention, reality in the local parallel market is another.

“More and more people understand that if they save Bolivians and keep them in their boxes for a long time, they will lose purchasing power“, Said the enthusiast of Bitcoin, Andree Canelas, a Reuters. While they may experience volatility to “short or medium term“He said that”In the long term [las criptomonedas] They are a good capital reservation“

“This is not a sign of stability“, José Gabriel Espinoza, former director of the Central Bank of Bolivia, argued.”It is rather a reflection of the deterioration of the purchasing power of households ”.

Central Bank of Bolivia recognizes cryptocurrency boom

Significant growth in the use of cryptocurrencies in Bolivia is observed after local authorities lifted last year a prohibition of several years. The Central Bank of Bolivia (BCB) was more flexible last June when it made the historical decision to reverse a previous resolution that restricted trade and payments with cryptocurrencies nationwide.

Since then, the volume of transactions reached USD $ 430 million in more than 10,000 individual operations, reported Reuters citing the report of the monetary authority published this week.

“These tools have facilitated access to transactions in foreign currency, including remittances, small purchases and payments, benefiting micro and small businesses from various sectors, as well as families across the country“recognized the Central Bank of Bolivia in a said statement cited.

At the beginning of the year, the Bolivia government resorted to cryptocurrencies as an alternative payment mechanism for energy imports amid the challenges for the shortage of dollars and fuel.

A decree in March authorized Bolivian fiscal oil deposits (YPFB) to opt for cryptocurrencies for gasoline, diesel and additives import operations; although then a subsequent decree limited the state to use these assets as part of a series of actions aimed at curbing speculation in cryptocurrency exchanges such as Binance

The Bolivian government has been working in a regulatory framework for cryptocurrencies that are aligned with the international standards established by the Latin American Financial Action Group (GAFI), the bank reiterated, according to coverage.

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Hannah Estefanía Pérez / Diariobitcoin

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