Surge in Cryptocurrency Transactions in Bolivia Amid Economic Crisis

Dramatic Increase in Digital Asset Transactions

Recent reports indicate a significant rise in the use of digital currencies in Bolivia, as more citizens turn to platforms like Binance and stablecoins such as Tether to safeguard their finances against the declining value of the boliviano.

Record-Breaking Transaction Figures

The Bolivian central bank released new statistics showing that transactions involving Electronic Payment Channels and Virtual Assets skyrocketed by over 530%. In the first half of 2024, these transactions totaled $46.5 million, but surged to $294 million in the same timeframe of 2025.

Monthly Transactions Reach New Heights

In May, monthly transaction volumes hit an unprecedented $68 million, highlighting the growing adoption of digital currencies among Bolivians.

Benefits for Small Businesses and Families

The central bank noted that these digital tools have improved access to foreign currency transactions, aiding remittances, minor purchases, and payments. This has been particularly beneficial for micro and small enterprises across various sectors, as well as families throughout the country.

Shift in Regulatory Landscape

Cryptocurrency was banned in Bolivia until June of last year. Since the prohibition was lifted, the volume of transactions has reached $430 million, with over 10,000 individual operations recorded, according to the central bank.

Government’s Regulatory Efforts

The Bolivian government is currently developing a comprehensive regulatory framework for financial technology firms, aiming to align with international standards established by the Financial Action Task Force of Latin America (GAFILAT).

Economic Challenges Facing Bolivia

Bolivia is grappling with a severe economic crisis, characterized by nearly depleted dollar reserves, inflation rates at a 40-year high, and fuel shortages that have led to long queues at gas stations.

Currency Devaluation Concerns

The local currency has lost approximately half its value on the black market this year, despite the government’s efforts to maintain an artificially stable official exchange rate.

Seeking Alternatives for Financial Stability

As a result of these economic pressures, many Bolivians are exploring alternative options to protect their savings and facilitate transactions. Advocates for cryptocurrency argue that blockchain-based solutions could provide relief, although economists caution that these digital assets come with inherent risks.

Expert Opinions on the Situation

Former central bank president Jose Gabriel Espinoza commented on the situation, stating that the increase in cryptocurrency usage does not indicate economic stability but rather reflects the declining purchasing power of households.

Reporting by Lucinda Elliott in Montevideo and Daniel Ramos in La Paz.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.