Bolivia Sees Crypto Boom as Payments Hit Record Highs

• Bolivia recorded US$430 million in crypto transactions, mostly driven by individuals using Binance channels after lifting the national crypto ban.
• Bolivia’s government approved the use of crypto by its energy company to import fuel amid ongoing US dollar shortages.

Not just a community topic, crypto is now really coloring Bolivia’s economy. After officially lifting the crypto ban in mid-2024, the South American country has seen a sharp spike in the use of digital assets.

According to Reuters, the Central Bank of Bolivia (BCB) reported that in just 12 months, the value of crypto payment transactions reached $430 million. What’s more interesting is that around 86% of them were made by individuals—not large companies, not government agencies, but ordinary citizens.

Crypto Finds a Home in Bolivia’s Corner Shops and Street Markets

Most of these transactions took place through channels related to Binance, a platform that is quite well-known in the region. Amid a currency crisis, the highest inflation in 40 years, and a scarcity of US dollars, many Bolivians are turning to crypto as a means of survival.

Even in the city of Cochabamba, several small shops and retailers have put up signs saying “Accept Bitcoin” or “Pay with Tether and get a discount.” Some are even utilizing crypto ATMs, which were once considered only for technology exhibitions.

CNF previously reported in March that the Bolivian government had also stepped in. In an effort to patch up the dollar shortage and maintain fuel supplies, they have given the green light to the national energy company to use crypto as a means of payment for energy imports. This move may sound bold, considering that Bolivia has only recently opened the door to legalizing digital assets, but the government does not seem to want to wait too long.

This policy marks the first time that crypto has been used directly in the country’s public sector. Although there have been no actual transactions recorded so far, the system is already in place and is just waiting for the first trigger.

Several analysts have stressed that the success of this strategy will depend heavily on how the government manages the risks of the ever-changing regulations and the technical readiness in the field. Still, this policy has become a hot topic, even in neighboring countries who are wondering: can Bolivia be an example?

Crisis Pushes Bolivians Into Crypto, Curiosity Fuels the Rest

It is undeniable that this surge was triggered by a combination of crisis and creativity. When dollars are hard to come by, the boliviano is increasingly weak, and traditional payment systems feel slow, citizens are looking for faster and more resilient alternatives. Crypto answers that, albeit with its own risks.

People who previously avoided financial technology are now actively learning about wallets, private keys, and how to avoid being scammed by deepfakes that are rampant via WhatsApp.

Looking at other regions, we previously highlighted that Tether has invested in Orionx to increase access to crypto-based finance in Latin America, especially in areas that have been underserved by the banking system. Orionx itself has plans to expand its infrastructure network and provide faster and more practical cash management services for local businesses.

Furthermore, BCB also seems aware that this growth must be balanced with education. They held digital finance training in nine departments, inviting the public to understand the risks of crypto price fluctuations and the dangers of “random QR scanning.”

This effort is considered important, especially since most new users come from micro-businesses and individuals who have no previous experience in the crypto world.