USDT is considered the National Currency in Bolivia

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TL; DR

• Bolivia is evaluating whether USDT can function as a payment system in parallel with the boliviano and traditional US dollars.
• No launch date, final rule, or USDT change has been announced.
• Direct banking integration with merchants can reduce reliance on informal P2P exchanges and simplify remittances, currency conversions, and global payments.
• USDT can improve access to digital dollars but cannot restore Bolivia’s foreign exchange reserves or offset the exchange rate and issuer risk.

Bolivia is considering whether to integrate Tether’s USDT stablecoin into the country’s payment system as a payment system managed alongside the boliviano and the US dollar.

Finance Minister José Gabriel Espinoza said on July 10 that the government is examining how to integrate the USDT “as a single currency” within the payment system, according to his comments written by La Razón.

This idea is still being discussed. Bolivia has not yet published any regulations, designated payment providers, set an issuance date, or declared USDT legal. The government is instead considering how the digital dollar, which is already used by households and businesses, can go through the financial process.

The Weakness of the Dollar Created a Pre-Requirement for Corrections

The proposal follows years in which Bolivia has been under pressure to use foreign capital. The The Central Bank of Bolivia’s May 2026 Financial Stability Report He said that the amount of foreign exchange has returned slightly and is almost comparable to what the economy provides with foreign currency.

Bolivia also replaced the previously established system in June with a flexible system. Under the Central Bank Decision No. 88/2026The value of the Bolivian dollar is now calculated daily from foreign exchange transactions conducted by regulated banks.

USDT was created as an alternative when access to bank dollars was restricted. Users can buy a dollar-linked token, hold it digitally, and send it without having to access documents or rely on traditional international bank transfers.

The growth was already evident a year after Bolivia changed its old restrictions. Central bank statistics show that the value of the real estate market rose from $46.5 million in the first half of 2024 to $294 million in the same period of 2025, an increase of more than 630%. The total volume reached $430 million after the policy change, with the public representing 86% of transactions recorded through the financial system.

The figures, published in The Central Bank’s review of the first year under the new policyshows that the use of stablecoins was mainly driven by families and not just large companies or commercial traders.

Bolivia Has Already Moved From Prohibition To Banking

The official opening began in June 2024, when the Central Bank started Resolution No. 082/2024 removed the ban on the use of electronic payment instruments for the purchase and sale of physical goods.

The ruling did not convert USDT or other cryptocurrencies into official currencies. It allowed regulated payment systems to adapt to the current situation and created a way for banks and financial services to enter the market.

Bolivia expanded the building to Executive Order No. 5384which refers to service providers that require and require financial technology companies that operate in areas such as storage, exchange, transfer, payment, and token assets to obtain authorization from the Financial System Supervisory Authority.

Banking services are already starting. Banco FIE every day real property service rules allowing eligible customers to buy and sell USDT and receive transfers through a crypto account connected to the bank’s electronic platform. Users must have a Bolivian savings account and complete the bank’s requirements.

That version still treats USDT as a separate currency. The integration of the entire payment system can be improved by allowing the funds to be directly connected to merchants, transfers, invoices, and other bank accounts without the need for the user to leave the controlled interface.

How Simple Daily Payments Can Be

The current process may require several unrelated steps. One would need to buy USDT through a bank or P2P market, transfer it to another wallet, sell it in bolivianos, and transfer the money to a bank account before making a regular payment.

The harmonization of national wages can reduce this conflict in four practical ways:

None of the jobs are guaranteed by the government. Their price depends on the final technical design, participating banks, merchant approval, transaction limits, and the price paid for the exchange between USDT and bolivianos.

Exchange coverage may be more important to users than blockchain payments. A transfer that costs just a few cents per chain can be expensive if the bank or lender applies high transaction fees, fees, or withdrawal fees.

Direct integration can also reduce some of the risks associated with anonymous P2P marketplaces. Customers will not need to send money to anonymous partners and wait for token transfers, while regulated providers can provide documentation, customer support, and defined complaint procedures.

Transactions are less confidential. Bank-linked USDT payments may require identity verification, transaction monitoring, and a possible review of the sender, recipient, wallet, and source of funds.

USDT Provides Access to Dollars, Not Most Dollar Deposits

Integrating USDT will not create additional currency within Bolivia or increase the Central Bank’s exchange reserves. The USDT token is a private decision that is designed to manage the dollar through a facility that is held outside of Bolivia, not a Central Bank deposit or guarantee from Bolivia.

For exporters, it can provide an alternative solution when the exporter is preparing to receive a trademark. The transaction still requires someone to provide USDT in exchange for bolivianos, and the final price reflects local demand, liquidity, leveraged spreads, network fees, and access to peers.

A 2026 Bank for International Settlements Report found that about 98% of the stablecoin’s value comes from US dollars. The report identified the transfer of lower costs and access to a fixed-price store as a potential benefit for the upcoming economy, while warning that transaction fees and splits on routes and exits could wipe out expected revenue.

The same design can accelerate digital growth. If households and businesses are increasingly pricing goods, keeping stores, or processing contracts in USDT, demand may shift away from the boliviano even without USDT becoming legal.

This makes Bolivia difficult. Official mergers would improve existing transactions in a managed system, but making dollar-linked tokens easier to store and use could weaken the demand for domestic currency and disrupt monetary policy.

AML Controls Will Determine How The System Works

Espinoza said that the proposal should be carefully evaluated because Bolivia was added to the list of Financial Action Task Force in 2025. Any national system of USDT will be created according to financial-crime laws as well as payment technology.

The March 2026 FATF report on stablecoins and non-custodial wallets warned that wallet-to-wallet transfers can happen without a regulatory intermediary who checks for customers. It established anti-money laundering obligations for issuers, banks, exchanges, and other service providers.

For general users, managed services may include:

• Identity and customer verification before account opening.
• Checking wallet addresses and their affiliates.
• Asking for more information about the source or purpose of the larger payment.
• Actions are enabled or disabled when an action triggers a set of rules.
• Limits on transfers to and from networks not supported by self-sustaining wallets.

This regulation can reduce fraud and make bank support possible when transactions are disputed. They can also delay payments and block transfers that can be canceled immediately.

Technical regulation does not eliminate any consumer risk. The country of Bolivia the financial manager has warned that stablecoins depend on the reserves of the issuer, the security of the platform, the continuity of service, and the ability of the user to understand the difference between bank money and digital assets provided privately.

Setting Up a Real Payment Method?

The government’s review will be a process of implementation unless it addresses a number of issues that have not been resolved. Officials need to know how USDT will be distributed, which banks, wallets, fintech companies, and merchants will be allowed to process it, and how the USDT-boliviano currency will be calculated. The final plan will also require clear rules on the definition of payments, if merchants receive USDT directly or are paid only in bolivianos, and how refunds, incorrect transfers, account closures, supplier failures, and customer complaints will be handled.

The implementation of USDT will make existing services easier to use, especially for remittances, currency conversion, small foreign trade, and merchants who are already serving customers with stablecoins. However, it would not solve the problem of Bolivia’s foreign exchange deficit. The practical test is whether well-managed integration can make payments faster and more transparent without exposing users to hidden transaction costs, weak consumer protections, or unregulated financial risks.