Bolivia is evaluating the integration of Tether’s USDT stablecoin into its national payments system, according to a local media report, a move that would mark a significant shift in the South American nation’s approach to digital currencies.
The Bolivian central bank and financial regulatory authorities are studying how the dollar-pegged stablecoin could be used for domestic transactions, cross-border remittances, and as a store of value within the country’s financial system, the report said. If approved, the integration would give Bolivian residents and businesses a regulated channel for transacting in a dollar-denominated digital asset.
Bolivia has historically maintained a restrictive stance on cryptocurrencies. In 2014, the country’s central bank banned Bitcoin and other digital currencies, citing concerns about financial stability and consumer protection. However, in 2024, the government began to soften its position, allowing regulated financial institutions to engage with crypto assets through authorized channels as inflation and currency depreciation pressures mounted.
The consideration of USDT comes amid rising demand for dollar-pegged assets in Bolivia and across Latin America. The region has become one of the fastest-growing markets for stablecoins, with countries like Argentina, Venezuela, and Brazil seeing significant adoption as citizens seek protection against local currency devaluation and inflation.
Tether’s USDT is the largest stablecoin by market capitalization, with a circulating supply exceeding $110 billion. The token is used extensively for trading, remittances, and as a medium of exchange in markets with limited access to U.S. dollars.
No timeline has been provided for a final decision on the proposal. Bolivian regulators are expected to conduct further analysis on the legal, operational, and financial implications before making a determination.
This article was adapted from Decrypt. Read the original here.
