Crypto
Home›Crypto›Regulation›Bolivia evaluates adding Tether USDT to its national p…
Bolivia evaluates adding Tether USDT to its national payments system
The government says USDT would be assessed to circulate alongside the boliviano and U.S. dollar, but any rollout would require stronger anti-money laundering controls because Bolivia remains on the FATF grey list.
CoinDesk reports that Bolivia is evaluating a framework to integrate Tether’s USDT stablecoin into its national payments system as a regulated alternative to the boliviano and the U.S. dollar.
Bolivia’s Economy Minister José Gabriel Espinoza said the proposal is under technical review, with implementation rules not published and USDT not yet granted legal-tender status, according to La Razón. Officials are also developing a framework for banks, digital wallets, and payment providers.
CoinDesk adds that Bolivia lifted restrictions on crypto transactions in June 2024, and crypto usage has since surged. The report cites central bank data showing crypto transaction volume rose from $46.5 million in the first half of 2024 to $294 million during the same period last year, and total volume increased 630% after the restrictions were removed.
The report also notes that any rollout would require stronger anti-money laundering controls because Bolivia remains on the Financial Action Task Force’s grey list, which increases monitoring over weaknesses in a country’s financial crime regime. CoinDesk ties the growing demand to businesses and consumers seeking alternatives amid pressures from scarce U.S. dollars, after Bolivia shifted to a floating exchange rate earlier this year.