Central Bank of Bolivia Discusses Tether (USDT) Integration in National Payment System: A Practical Choice to Address Dollar Shortage

On July 13, 2026, the Central Bank of Bolivia (BCB) announced that it is considering officially integrating Tether (USDT) into the national payment system, signaling a significant shift in monetary policy. This follows explosive growth in digital asset transaction volume, which reached $430 million after the lifting of the cryptocurrency ban in mid-2024. The government is taking a pragmatic approach to resolve the dollar liquidity shortage and mitigate economic instability caused by the dual exchange rate system.

The BCB's announcement signifies that cryptocurrency has emerged as a core element of actual economic activity in Bolivia, beyond being a mere investment vehicle. The transaction volume of $430 million achieved within a year of the 2024 deregulation reflects strong market demand and served as a major background for the central bank's decision to incorporate stablecoins into the institutional financial network.

Bolivia's integration of USDT is more than a technical upgrade; it is a pragmatic pivot toward a stablecoin-based financial future.

The Bolivian economy is currently facing challenges from a dual structure where the official exchange rate and the market rate are separated. Due to the continuous decline in foreign exchange reserves, the Financial System Supervisory Authority (ASFI) has implemented strict measures, such as forcing commercial banks to reduce their reserve holdings, which has led to a contraction of liquidity across the financial sector. In this situation, USDT, pegged to the value of the dollar, is being chosen by the private sector as a reliable store of value and means of payment.

Chronology of Deregulation: From Ban to Integration

Since 2024, the Bolivian government has withdrawn its cryptocurrency ban and implemented a roadmap to institutionalize digital assets. This policy shift was further strengthened through cooperation with neighboring countries, with technical exchanges with El Salvador serving as a significant turning point. In early 2026, market-friendly measures followed, such as allowing commercial financial institutions to autonomously determine dollar buying and selling prices regardless of the official exchange rate.

• Mid-2024: Official lifting of the 10-year cryptocurrency trading ban and market opening.
• July 2025: Signed a strategic agreement with El Salvador's National Commission of Digital Assets for regional financial cooperation.
• Early 2026: Introduction of a floating exchange rate system and expansion of commercial banks' autonomy in dollar transactions.
• July 13, 2026: BCB announces a review of the official integration of USDT into the national payment system.

USDT is now widely used across daily commerce and financial services for Bolivian citizens. Since 2025, the government has pursued policies to integrate USDT into the banking system, allowing citizens to use it for savings, loans, and daily payments. ASFI has also modernized regulations regarding the use of international payment cards, creating an environment where consumers can use digital assets more conveniently.

Tether is also actively investing in building financial infrastructure within Latin America. On July 7, 2026, Tether announced a $20 million investment in Mercado Bitcoin's strategic funding round to support the expansion of on-chain financial infrastructure, including tokenization, payments, and credit services. This private sector investment is expected to create synergy with Bolivia's national payment system modernization efforts.

In response to the surging use of digital assets, Bolivian authorities are accelerating the establishment of legal safeguards. New banking regulations implemented in 2026 require digital wallet service providers to comply with strict Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. This is considered an essential measure to preemptively block illegal financial activities using cryptocurrency and increase the transparency of the financial system.

Bolivia's proactive response is expected to set an important precedent for the entire South American region, including Mercosur member states. Once the integration of USDT into the BCB's national payment system is complete, Bolivia is projected to become a leading nation that has established a hybrid financial system where fiat currency and stablecoins coexist. Experts anticipate that this move will have a positive impact on restoring Bolivia's international credibility and developing the fintech industry.