Bolivia is considering integrating Tether’s USDt into its national payments system, a move that could mark one of the largest stablecoin adoption initiatives in Latin America as the country grapples with a persistent shortage of US dollars.
Economy and Public Finance Minister José Gabriel Espinoza said at a press conference on Monday that the government is evaluating a regulatory framework that would allow USDT to circulate “as another currency,” alongside the Bolivian and the US dollar.
According to Spanish news outlet CriptoNoticias, the framework is still under review and, if adopted, would recognize USDT for everyday transactions, including payments, savings and commerce, without relying exclusively on cash or the traditional banking system.
Espinoza said any implementation would require a solid regulatory framework and strong anti-money laundering safeguards because Bolivia remains on the Financial Action Task Force (FATF) gray list, which identifies jurisdictions under increased monitoring for deficiencies in preventing money laundering and terrorist financing.
Fountain: THE DUTY
The proposal is part of Bolivia’s broader adoption of digital assets following the lifting of its long-standing ban on cryptocurrencies in 2024. Since taking office in late 2025, President Rodrigo Paz Pereira’s administration has committed to integrating digital assets into the formal financial system, paving the way for banks to offer cryptocurrency-related products and services, including stablecoin-based accounts.
USDT is the world’s largest stablecoin, with a market capitalization exceeding $184 billion, according to CoinMarketCap.
Related: USDT gains payments, USDC gains DeFi as stablecoins diverge: Dune
Dollar Scarcity Fuels Stablecoin Momentum
Bolivia’s stablecoin initiative comes as the country faces a prolonged shortage of US dollars, which are widely used alongside the national currency, the boliviano.
As Reuters reported, Bolivia maintained an official exchange rate of 6.86 bolivianos per US dollar for purchases and 6.96 for sales from 2011 until early this year, when growing pressure on foreign exchange reserves forced the government to abandon the long-standing peg. The resulting dollar shortage fueled the expansion of a parallel currency market, where the dollar traded at a steep premium to the official rate.
The growing gap between official and parallel exchange rates has driven demand for dollar-denominated alternatives, including stablecoins like USDT, which have increasingly been used for payments.
Bolivia ranked highly in Chainalysis’ 2025 assessment of cryptocurrency adoption in Latin America, with $14.8 billion in total transaction volume over a 12-month period.
Related: Crypto Biz: How stablecoins found their niche
