Bolivia Evaluates Tether’s USDT as Payment Option Following Crypto Ban Reversal
Minister of Economy highlights regulatory efforts and FATF monitoring as crypto transaction volumes reach $14.8 billion.
The Bolivian government is investigating the potential inclusion of Tether’s dollar-backed stablecoin, USDT, as a recognized form of payment within the country. The move follows a significant shift in the nation’s financial policy after it lifted a long-standing ban on cryptocurrency transactions in 2024.
According to a report from the local publication La Razón, Minister of Economy José Gabriel Espinoza Yáñez addressed the evaluation during a Friday press briefing. He emphasized that while the economy is showing signs of stabilization, the integration of digital assets requires a cautious regulatory approach.
“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 stated. He noted that the government is currently developing regulations to govern the use of crypto assets for citizens who have already adopted them, often out of economic necessity.
Market Growth and Institutional Adoption
The assessment comes amid a surge in digital asset activity within the South American nation. Between July 2024 and June 2025, Bolivia recorded more than $14.8 billion in crypto transaction volumes. This performance placed the country eighth among its Latin American peers, surpassing the transaction volumes of Puerto Rico and Ecuador.
Institutional support for the asset class has already begun to materialize. In October 2024, Banco Bisa, one of the largest banks in the country, launched crypto custody services. The service specifically allows clients to store and transfer USDT, though it does not currently support other cryptocurrencies.
Tether CEO Paolo Ardoino responded to the reports on social media, stating that USDT is increasingly serving as a “cornerstone within several emerging markets economies.” USDT currently maintains a market capitalization exceeding $184 billion, making it the third-largest cryptocurrency by market value.
The FATF Gray List
The Financial Action Task Force (FATF) maintains two primary classifications for jurisdictions with strategic deficiencies in their regimes to combat money laundering and terrorist financing. The “black list” identifies high-risk jurisdictions, while the “gray list”—where Bolivia is currently positioned—identifies countries that are under increased monitoring.
Nations on the gray list have committed to resolving identified deficiencies within agreed-upon timeframes. Espinoza Yáñez indicated that the current administration’s economic measures, designed prior to taking office eight months ago, are beginning to show results despite these international monitoring challenges.
Technical Overview: Stablecoins and USDT
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency or a commodity. USDT is pegged to the U.S. dollar on a 1:1 basis, meaning Tether aims to maintain reserves that match the value of all USDT tokens in circulation.
In many emerging markets, stablecoins are used as a hedge against local currency volatility or as a tool for international remittances. Unlike volatile assets like Bitcoin, stablecoins are intended to function more like traditional currency for daily transactions and value storage.
