Bolivia's Four Decades of Inflation Spark a Surge in USDT as an Unofficial Currency

Amid economic turmoil in Bolivia, Tether’s

has emerged as the default currency for countless daily purchases and price listings nationwide. As inflation soared to a four-decade high and the Boliviano’s value dropped by 50% against the U.S. dollar in 2025, Bolivians increasingly turned to USDT as a shield against currency fluctuations. Everyday items like Cadbury Dairy Milk, Milka chocolate, and sunglasses are now tagged with USDT prices in stores, reflecting a growing consumer preference for stable digital assets as both a reliable value store and a commonly used payment method title5 [ 3 ].

The surge in USDT use was sparked by the Bolivian government’s reversal of a ten-year cryptocurrency ban in mid-2024. Following this policy shift, trading volumes for stablecoins such as USDT surpassed $48 million in a matter of months. October 2024 saw Banco Bisa—one of Bolivia’s largest banks—launch regulated custody services for stablecoins. With the Central Bank proposing that residents could directly convert Bolivianos to USDT, digital assets have become mainstream in a country where conventional banking options are scarce title6 [ 4 ]. Mobile wallets and QR payments now make it possible for people without bank accounts to conduct USDT transactions and bypass traditional cash systems.

Paolo Ardoino, CEO of Tether, has noted Bolivia as a leading example for nations struggling with volatile currencies. In June 2025, Ardoino posted photos of Bolivian shops using USDT price labels, highlighting the stablecoin’s contribution to “financial stability for people facing unstable local currencies.” The Bolivian Central Bank indicated that crypto transactions exceeded $430 million in 2025, marking a 630% increase from earlier years, with USDT comprising most of the volume. These numbers likely underestimate actual activity, since many peer-to-peer transfers are not officially recorded title5 [ 3 ].

The widespread adoption of USDT is reshaping Bolivia’s financial landscape. By 2025, some products were only available for purchase with USDT, underscoring diminished faith in the Boliviano. The change is also challenging the role of traditional banks, as digital wallets and decentralized platforms streamline international payments and decrease dependence on foreign exchange markets. Experts suggest Bolivia’s experience could motivate other emerging economies to explore similar approaches, although regulatory systems will need to adapt to ensure tax oversight and prevent abuse.

While USDT brings significant advantages, obstacles remain. Rural communities encounter difficulties like poor internet connectivity and low digital literacy, hindering widespread adoption. The government, though more open since 2024, still maintains a cautious approach, which creates lingering uncertainty for businesses. Nevertheless, the increasing use of USDT for daily transactions highlights Bolivia’s embrace of decentralized financial solutions, making the country a valuable case for how stablecoins can address economic instability in practice.