Small businesses and individuals in Bolivia are increasingly adopting cryptocurrencies like Bitcoin and stablecoins like Tether, and platforms like Binance, as a hedge against the country's severe economic crisis. Bolivia faces near-zero dollar reserves, 40-year high inflation, fuel shortages, and a currency that lost half its value on the black market. Despite crypto being outlawed until last year, transactions are growing, though economists warn of volatility risks.
Crypto gains foothold in Bolivia as small businesses seek currency alternatives
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TL;DR: Key points with love ❤️Small businesses and individuals in Bolivia are increasingly adopting cryptocurrencies like Bitcoin and stablecoins like Tether, and platforms like Binance, as a hedge against the country's severe economic crisis. Bolivia faces near-zero dollar reserves, 40-year high inflation, fuel shortages, and a currency that lost half its value on the black market. Despite crypto being outlawed until last year, transactions are growing, though economists warn of volatility risks.
Trending- 1 2021: El Salvador made Bitcoin legal tender.
- 2 2023: Binance agreed to pay a fine of over $4.3 billion.
- 3 Last year (2024): Cryptocurrency was outlawed in Bolivia until then.
- 4 October (2024): Transactions of digital assets in Bolivia reached US$24 million.
- 5 This year (2025): Bolivia's currency lost half its value on the black market.
- 6 June 7, 2025: Tether chief executive Paolo Ardoino posted photos from Santa Cruz showing items priced in USDT.
- 7 June 26, 2025: Article published detailing crypto adoption in Bolivia.
- Crypto gaining a foothold in Bolivia's economy
- Increased digital asset transactions
- Bolivians vulnerable to crypto's constant fluctuation in value
- Deteriorating purchasing power of households
- Spawned a black currency market with a wide gap between formal and parallel FX rates
What: Cryptocurrencies (Bitcoin, Tether) and crypto exchanges (Binance) are gaining a foothold in Bolivia; small businesses are accepting crypto payments; ATMs allow swapping coins for crypto; digital asset transactions have risen significantly; economists warn of volatility and 'crypto-colonialism'.
When: This year (boliviano lost half its value); last year (crypto outlawed until then); October (US$24 million transactions); 2021 (El Salvador made Bitcoin legal tender); 2023 (Binance fine); June 7 (Tether CEO's post); Thursday (June 26, 2025, article published).
Where: Cochabamba, Bolivia; Santa Cruz, Bolivia; Bolivia; Argentina; Venezuela; El Salvador; Northumbria University, Britain; Latin America; United States.
Why: Bolivians are facing a rising economic crisis (near-zero dollar reserves, 40-year high inflation, fuel shortages, currency depreciation); seeking currency alternatives and a hedge against the depreciation of the boliviano; to keep money safe and grow wealth; Binance is popular for its relatively low transfer fees and peer-to-peer trading.
How: Businesses offer cut-price deals for crypto payments; ATMs allow coin-to-crypto swaps; people use Binance accounts for purchases; crypto proponents push blockchain-based tokens as an answer; Tether CEO promotes USDT use.