Bolivia weighs USDT payments as crypto use accelerates

Bolivia is considering whether Tether’s USDT should be allowed as a payment method, a move that would bring the world’s largest stablecoin closer to everyday financial use in the country. For retail investors, the signal is clear: stablecoins are becoming part of the policy conversation in markets where access to dollars and fast digital settlement matter.

The review was reported by La Razón, citing comments from Bolivia’s economy minister, José Gabriel Espinoza Yáñez, at a Friday briefing. USDT is a dollar-backed stablecoin, meaning it is a crypto token designed to function around the value of the U.S. dollar rather than trade like a volatile coin such as Bitcoin.

Espinoza Yáñez said the government is studying the idea carefully because Bolivia remains on the Financial Action Task Force’s gray list. The FATF gray list covers countries under increased monitoring for weaknesses in systems meant to fight money laundering and terrorist financing.

“Remember that Bolivia is on the [Financial Action Task Force] gray list, yet another consequence of the problems they left us with in the past, and these crypto assets must be carefully evaluated,” Espinoza Yáñez said, according to La Razón.

The minister said Bolivia is also working on rules for people already using crypto assets. “We are working on regulations to govern their use for those who have adopted them, in many cases out of necessity, and know how to use them properly,” he said, according to the publication.

Why Bolivia’s crypto policy is changing

Bolivia lifted a block on crypto transactions in 2024. Since then, crypto activity in the country has grown alongside wider adoption across Latin America.

Chainalysis said Latin America recorded nearly $1.5 trillion in crypto transaction volume over the three-year period ending in June 2025. Bolivia ranked eighth among Latin American countries from July 2024 through June 2025, with $14.8 billion in crypto transactions, according to Chainalysis data cited in the report. That put Bolivia ahead of Ecuador and Puerto Rico.

For users, the practical appeal of a dollar-linked token is straightforward. A stablecoin can be used to move value digitally without relying on a traditional bank transfer, although it still carries risks tied to regulation, custody and the issuer behind the token.

Bolivia’s financial sector has already taken a step toward USDT. In October 2024, Banco Bisa began offering crypto custody services that let customers store and transfer USDT, while not supporting other crypto assets, according to prior reporting cited in the report.

Tether watches emerging-market demand

Tether CEO Paolo Ardoino responded to reports about Bolivia’s review by saying on X that “USDT is more and more used as a cornerstone within several emerging markets economies.”

USDT is the largest stablecoin by market capitalization and ranks third among all crypto assets, with a market value of more than $184 billion, according to the report.

Espinoza Yáñez also framed the government’s broader economic position as improving. “The Bolivian economy today is considerably different from what we found eight months ago,” he said in a statement, adding that measures introduced by the government were part of a plan prepared before it took office and that early results were supporting that approach.

Bolivia has not announced a final decision on USDT payments. The government’s next step is to keep assessing how crypto assets could be used while building a regulatory framework around them.

This story draws on original reporting from Decrypt.