Bolivia officially integrates cryptocurrencies into its financial system — a decision that just recently seemed fantastical for a country with a strict monetary policy. Minister of Economy José Gabriel Espinoza announced that banks will have the right to store digital assets on behalf of clients.
Now cryptocurrencies will be able to function as a legal payment method for savings accounts, credit products, and loans. 'You cannot control cryptocurrencies globally, so you need to recognize them and use them to your advantage,' stated Espinoza.
When inflation drives the search for salvation
The government's decision is far from coincidental. Bolivia, like many countries in Latin America, suffers from high inflation of its national currency — the boliviano. In the 12 months leading up to October, the average inflation rate exceeded 22%, according to the National Institute of Statistics of Bolivia.
Given these indicators, it's not surprising that the country's residents have begun to widely switch to stablecoins as a means of saving and exchanging. Businesses are already setting prices in Tether (USDT) — a stablecoin pegged to the US dollar — instead of using the local currency.
The state energy company YPFB announced in March the creation of a system for paying for energy imports in cryptocurrencies. However, specific details have not yet been disclosed.
Auto giants paved the way
In September, major automakers — Toyota, Yamaha, and BYD Company — began accepting USDT as payment for their products in Bolivia. The reason? A severe shortage of US dollars in the country.
Dollars are critically important for international business and serve as a reserve asset for central banks. Stablecoins help solve this problem by bypassing currency restrictions. Any smartphone owner with a crypto wallet can buy and store tokens pegged to the dollar, bypassing traditional banks with their strict limitations.
High inflation and strict currency controls only strengthen the position of stablecoins as an alternative means of saving not only in Latin America but also in other developing economies.
The Bolivian solution reflects a new reality: fears of being left out of the cryptocurrency revolution force governments to adapt to digital assets rather than fight against them. Game theory in action — those who adapt first will win.
