Bolivia Weighs USDT Integration Amid Deepening Dollar Shortage

According to Economy and Public Finance Minister Jose Gabriel Espinoza, Bolivia is evaluating a regulatory framework that would allow Tether's USDT to circulate as a currency alongside the boliviano and US dollar on Monday. The move would recognize USDT for payments, savings, and trade, marking a shift from crypto as an investment tool toward stablecoins as part of the country's formal financial infrastructure.

Bolivia's push follows a prolonged shortage of US dollars, which has driven demand for digital dollar alternatives. The country recorded $14.8 billion in crypto transaction volume over the past 12 months, indicating existing stablecoin adoption even before formal integration. USDT, with a market capitalization of $184 billion, offers users digital access to dollars when physical cash and banking liquidity are constrained.