Chinese electric vehicles and USDT transactions underscore the dollar’s persistent dominance in Bolivia

Automotive shipments from China to Bolivia are now being transacted in

, highlighting the continued supremacy of the U.S. dollar in international commerce, even as China pushes for a move away from dollar reliance. , BYD, and Yamaha started accepting Tether’s (USDT) stablecoin for vehicle sales in Bolivia as of September 2025, according to statements from CEO Paolo Ardoino Tether CEO Paolo Ardoino, X post [ 1 ]. This shift draws attention to a paradox: while Chinese electric cars represent Beijing’s global ambitions, it is USDT—a digital equivalent of the U.S. dollar—rather than the yuan, that is gaining traction.

Bolivia’s swift embrace of stablecoins stems from financial instability. The Central Bank of Bolivia (BCB) disclosed a 630% jump in crypto-related transactions in the first half of 2025, hitting $294 million compared to $46.5 million over the same period in 2024 Central Bank of Bolivia (BCB) [ 2 ]. After ending a ten-year prohibition on cryptocurrencies in June 2024, the country permitted

to handle digital assets Autoridad de Supervisión del Sistema Financiero (ASFI) [ 3 ]. Facing inflation rates above 25% in 2025 and a shortage of U.S. dollar reserves, many Bolivians are turning to USDT as a way to shield their wealth from currency decline.

The use of USDT within Bolivia’s financial system reflects a larger regional trend, with stablecoins becoming vital for economic stability throughout Latin America. In Argentina, where inflation exceeds 100%, and Brazil, which has strong cryptocurrency regulations, stablecoin usage is also climbing Chainalysis Global Crypto Adoption Index [ 4 ]. Mexico, after experiencing a 23% fall in the peso’s value in 2025, increasingly relies on USDT and

for cross-border payments. Data from Chainalysis indicates that digital asset adoption in Latin America rose from 53% in 2024 to 63% in 2025, with nearly $415 billion in crypto transactions processed Chainalysis [ 5 ].

China’s attempts to establish the yuan in Latin American markets have encountered obstacles. While Bolivia settled approximately 10% of its trade with the yuan in 2025, and Brazil and Argentina accessed RMB liquidity, the general public still prefers USDT. “For both businesses and individuals in inflation-hit countries, USDT is more attractive due to its reliability, transaction speed, and accessibility—advantages the yuan has yet to offer,” stated the Asia Morning Briefing Asia Morning Briefing [ 6 ]. The yuan’s limited use outside China contrasts sharply with the global confidence and infrastructure that support the dollar.

This transition reveals the constraints of China’s digital yuan (CBDC) and currency swap strategies. Compared to stablecoins, which allow immediate and cost-effective payments, CBDCs remain largely restricted to domestic pilot programs J.P. Morgan Global Macro Research [ 7 ]. J.P. Morgan research notes that even though the dollar continues to dominate global trade invoicing and cross-border debt, the movement away from the dollar in central bank reserves and bond markets continues. Nevertheless, stablecoins such as USDT are bypassing these changes by embedding the dollar into everyday transactions in developing economies J.P. Morgan Commodity Strategy [ 8 ].

Toyota’s acceptance of USDT is in line with its broader blockchain adoption. In 2024, the company’s Blockchain Lab introduced a mobility-focused account platform using Ethereum’s ERC-4337, and its finance branch rolled out security token bonds on the blockchain Toyota Blockchain Lab [ 9 ]. These projects illustrate how digital finance is gaining ground in the automotive industry, even as global currency competition intensifies.

The fact that Chinese electric vehicles are being paid for in USDT points to a broader pattern: while China advocates for less reliance on the dollar through policy and trade, the dollar’s deeply rooted position in the world’s financial system—further strengthened by stablecoins—remains unchallenged. Bolivia’s case is echoed across Latin America, where stablecoins are not only helping to preserve purchasing power but also streamlining cross-border trade and remittance flows BitGo and Central Bank of Bolivia [ 10 ].