Bolivia has moved closer to recognizing Tether’s USDT as an official payment option alongside the boliviano and the U.S. dollar as the country continues to grapple with a prolonged shortage of foreign currency.
Summary
- Bolivia is considering recognizing USDT as an official payment option alongside the boliviano and U.S. dollar.
- Local banks already support USDT services as the country struggles with a prolonged dollar shortage.
- Tether is expanding institutional use of USDT while pursuing stronger reserve transparency through a KPMG audit.
According to reports from Bolivia, government officials are weighing a proposal that would allow USDT to circulate as part of the national payment system, a step that would formalize a practice already taking shape across parts of the country’s financial sector.
If approved, the move would make Bolivia the first Latin American nation to officially recognize USDT as a payment option alongside its domestic currency and the U.S. dollar.
Years of declining natural gas production and exports have steadily reduced Bolivia’s dollar reserves, leaving businesses and importers struggling to secure foreign currency. The shortage has pushed authorities to explore alternative payment methods, with crypto gradually becoming part of that strategy instead of remaining a niche financial product.
Dollar shortages have accelerated USDT adoption
The government’s first major crypto-related measure came in March 2025, when state-owned energy company YPFB received authorization to use cryptocurrency payments for fuel imports during the country’s worsening dollar shortage.
Retail adoption followed soon after. In June 2025, Tether chief executive Paolo Ardoino shared images on social media showing Bolivian stores listing everyday products, including dairy goods and chocolate, with prices displayed in USDT.
The posts suggested stablecoins were already being used for ordinary purchases rather than remaining limited to investment activity.
Crypto analyst CryptoPatel later argued on X that economic conditions, rather than regulation, were encouraging people to move toward stable assets, writing, “When your currency fails, bring in the stable one.”
His comments accompanied growing evidence that many consumers were choosing the dollar-pegged stablecoin as access to physical U.S. dollars became increasingly difficult.
Meanwhile, Bolivia’s banking sector has already begun supporting the ecosystem. Local lenders Banco Unión and Banco FIE currently provide services linked to USDT, indicating that much of the financial infrastructure needed for wider adoption is already in place.
Formal recognition would instead establish a regulatory framework around an existing trend, potentially making remittances faster, lowering transaction costs and offering an alternative to informal dollar markets.
Tether expands institutional use of USDT
Outside Bolivia, Tether has continued promoting USDT for larger financial transactions. As previously reported by crypto.news, Hyundai Motor America and Hyundai Motor Mexico completed a pilot cross-border treasury payment using USDT on the Avalanche blockchain.
According to Tether, Hyundai Motor America converted U.S. dollars into USDT before transferring the stablecoin to its Mexican subsidiary, where it was exchanged back into U.S. dollars.
The company said the $20,000 transfer, including verification, was completed in about seven minutes, compared with three to four hours or longer for a conventional bank transfer.
Institutional credibility has also become a focus for the stablecoin issuer. In March 2026, Tether appointed KPMG to conduct a full audit of reserves backing roughly $185 billion worth of USDT. The company said the audit is intended to strengthen confidence in the token’s reserve backing following years of scrutiny over its transparency.
Operationally, Tether has concentrated its stablecoin strategy around USDT after discontinuing its aUSDT product, reinforcing the flagship token’s role in its international business.
Despite growing momentum, Bolivia has not yet finalized the legal framework for integrating USDT into its payment system. Neither the Central Bank of Bolivia nor lawmakers have published formal implementation rules.
Still, reports indicate the proposal has advanced further than previous crypto initiatives in the country, while other emerging economies facing persistent dollar shortages are expected by analysts to watch Bolivia’s experience closely.
