Bolivia Embraces Stablecoins: Economy Minister Unveils New Crypto Policies
Bolivia’s financial space is on the cusp of a major revolution. Marking a significant shift from its previous restrictive stance, the country is set to integrate cryptocurrencies, particularly stablecoins, into its formal financial system.
This move is part of Bolivia’s broader efforts to modernise the country’s financial infrastructure and enhance economic stability. As the South American country embarks on this journey, it is worth exploring the potential implications of this move and what it means for the future.
Bolivia to Integrate Stablecoins
According to recent reports, Bolivia’s Economy Minister Jose Gabriel Espinoza has unveiled plans to incorporate cryptocurrencies, beginning with stablecoins, into the country’s financial ecosystem. This move marks a significant change in Bolivia’s regulatory approach, as it had previously banned cryptocurrencies.
Under the new guidelines, Bolivian banks will be empowered to provide a variety of crypto-based products and services. These include savings accounts, credit cards, and loans that accept cryptocurrencies as payments. This development effectively established stablecoins as a form of legal tender, representing a significant shift in the country’s financial transaction system.
Significantly, this decision to integrate cryptocurrencies is largely driven by the country’s ongoing economic challenges, including inflation and currency devaluation. With the local currency, the Boliviano, losing value rapidly, citizens are turning to stablecoins like USDT as a way to safeguard their savings and protect their purchasing power.
It is noteworthy that this plan is part of President Rodrigo Paz’s market-focused agenda to reverse the country’s economic stagnation. He believes that this crisis was caused by years of rigid policies. To tackle this issue, the President is now seeking over $9 billion in loans from major institutions like the World Bank and CAF. As part of these moves, the President is also looking forward to easy monetary policies, which pave the way for the growing adoption of cryptocurrencies and stablecoins in the country.
Bolivia Lifts Ban on Crypto: What it Means?
In 2014, the Bolivian government announced its restrictive stance on crypto, imposing a complete ban on crypto investment and transactions. In 2020, the country reiterated its stance, prohibiting banks from dealing with crypto entities.
However, the government loosened its policies in 2024, lifting its long-standing ban on Bitcoin and crypto payments. The ban has been officially rescinded, allowing banks to conduct transactions via approved electronic channels. The country intends to bring a resolution to its economic turmoil via cryptocurrencies.
By aligning its regulations with those of Latin American countries, Bolivia is signalling its commitment to embracing the growing trend of cryptocurrency adoption in the region. This regulatory shift is expected to have a critical impact on Bolivia’s financial economy, enabling greater flexibility and innovation. With this move, Bolivia joins the growing list of Latin American countries that are actively working to harness the potential of crypto and blockchain.
Following this progressive approach, Bolivia’s crypto market saw an explosive growth, with transaction volumes skyrocketing by 530% to reach around $15 billion between 2024 and 2025. This surge propelled Bolivia to 46th position globally in crypto adoption.
In line with this shift, Banco Bisa, a prominent bank in the region, introduced services for custody and transactions of stablecoins like USDT. This enables their user for cross-border payments and as a safeguard against local currency depreciation.
