US dollar liquidity tightens, Bolivia considers using USDT to pay

Bolivia considers including USDT in its national payment system

Bolivia is considering including the USDT stablecoins issued by Tether Company into its national payment infrastructure. Against the backdrop of a chronic US dollar shortage, this move may become an important milestone in the application of stablecoins in Latin America. The government said it was developing a regulatory plan that would view the USDT alongside the boliviano and the U.S. dollar as a payment instrument rather than a marginal asset outside the formal economy.

Economy and Public Finance Minister Jose Gabriel Espinosa said at a press conference on Monday that the government is evaluating a framework that would allow the USDT to "flow like another currency." He added that any promotion would require strong supervision and anti-money laundering controls because Bolivia remains on the Financial Action Task Force (FATF) grey list.

Core Points

Bolivia is evaluating whether USDT can be used for day-to-day transactions such as payments, savings and trade. The proposal requires the establishment of a regulatory structure that would allow USDT to be integrated into the country's formal payment system. Bolivia's status on the FATF grey list means that anti-money laundering safeguards will become a core consideration in any approval process. The move comes amid a widening gap between the country's official exchange rate and parallel market exchange rates, leading to increased demand for dollar-denominated alternatives.

USDT will be included as part of daily payments

According to relevant reports, the regulatory framework under consideration is still under review. If passed, the goal is to formally recognize USDT in retail and commercial activities, including payments, savings and trade, rather than relying solely on cash or traditional banking channels. Espinosa's statement is significant because it suggests that Bolivia is not just allowing cryptocurrency transactions or occasional transfers, but is considering a system design that makes USDT a practical alternative to transactions. For consumers and businesses, this means more predictable settlement options are available when local access to dollars is restricted.

Regulatory obstacles related to FATF regulation

Espinosa also emphasized that any implementation will depend on a "sound regulatory framework" and effective anti-money laundering protection measures. His remarks were directly related to Bolivia's inclusion in the FATF grey list, which identifies jurisdictions that need increased surveillance due to shortcomings in preventing money laundering and terrorist financing. This background helps explain why the government takes a cautious, frame-first approach. Introducing stablecoins into national payment roles often requires a clear division of responsibilities-who can distribute or process them, how compliance checks are performed, and how suspicious activity reports work. For Bolivia, these requirements may become a key constraint on the USDT's promotion from proposal to practice.

Dollar shortage and exchange rate pressure drive demand for stablecoins

The policy discussion comes against the backdrop of Bolivia's ongoing dollar shortage. It was previously reported that Bolivia had maintained an official buying exchange rate of 6.86 bolivianos to the US dollar and a selling exchange rate of 6.96 for many years, and later abandoned the long-term pegged exchange rate system under pressure from foreign exchange reserves. As the report pointed out, the abandonment of the pegged exchange rate system led to the expansion of parallel foreign exchange markets, where the dollar traded at a large premium relative to the official exchange rate. When there is a huge difference in dollar costs between official channels and black markets, demand often shifts to tools that track or approximate the value of the dollar. In this environment, stablecoins such as USDT have become attractive in the payment field because they provide dollar-denominated units without directly obtaining physical dollars. Industry research also points to growing activity. According to an agency's assessment of the adoption of cryptocurrencies in Latin America in 2025, Bolivia's total transaction volume in 12 months reached US$14.8 billion, included in the regional assessment. Although this figure does not separately list stablecoins, it supports the broader assertion that digital assets-often used to respond to monetary pressures-have become more deeply integrated into actual economic activity in the region.

Bolivia returns to crypto-friendly policies after the lifting of the ban in 2024

The USDT Payments Initiative is part of Bolivia's broader shift towards digital assets after lifting its long-standing ban on cryptocurrencies in 2024. Since taking office at the end of 2025, the government of President Rodrigo Paz Pereira has committed to integrating digital assets into the formal financial system. It has been previously reported that this approach paves the way for banks to introduce crypto-related products and services, which may include stablecoin-based accounts. The focus now is its specificity: the government is no longer just focusing on banking products or general "blockchain integration", but is clearly weighing how the USDT fits into daily payments. This difference will determine the speed at which stablecoins move from parallel use to regulated and widely accepted channels. It is worth noting how Bolivia's draft regulatory framework will be developed-especially given its compliance obligations under its FATF grey list status-and whether authorities will set measurable timetables for pilot projects or bank participation. The next question is not only whether the USDT will be recognized, but also how the country plans to manage its distribution, monitoring and settlement in a way that can withstand financial regulation and respond to real-world liquidity constraints.