Bolivia’s Crypto Boom: $430 Million in Transactions as Citizens Escape Soaring Inflation

Key Highlights

• Bolivia embraces crypto, with crypto transactions surging by 630%

• Bolivia is facing worsening economic conditions as inflation soars

In a stunning shift, Bolivia is rapidly embracing cryptocurrency as an economic lifeline. A new report from the Central Bank of Bolivia (BCB) reveals that crypto transactions surged by over 630% year-on-year, reaching $430 million.

This followed the country's reopening of formal payment rails for digital assets. The sharp rise reflects how Bolivians, both individuals and small businesses, are using crypto to navigate a worsening economic crisis.

Bolivia Crypto Boom: A Regulatory U-Turn Sparks Activity

In June 2024, Bolivian regulators passed Resolution 082/2024, reversing a longstanding ban and officially recognizing virtual assets. This allowed banks to process crypto transactions and route payments to exchanges like Binance, which now handles the majority of the country's formal crypto flows.

Also Read: Crypto crime soars in 2025

Since then, the use of cryptocurrency has exploded. In the first half of 2025 alone, crypto payments increased from $46.5 million to $294 million, compared to the same period in 2024. These figures only reflect activity on licensed channels overseen by Bolivia's financial system supervisor (ASFI), meaning the actual total, including peer-to-peer and informal trades, is likely far higher.

Why Bolivians Are Turning to Crypto

At the heart of the surge is a deepening economic crisis. Annual inflation hit 18.46% in May, the highest in four decades, while the Boliviano has lost over 50% of its value this year. With foreign exchange reserves nearly depleted, Bolivians lose trust in their national currency every day.

In response, many citizens have turned to stablecoins like USDT (Tether), using dollar-pegged assets to store value, transact, and even price goods. A growing number of local shops, salons, and restaurants now accept crypto payments, and some even offer discounts for Bitcoin purchases. Binance accounts are commonly used to purchase goods or pay bills, and crypto ATMs are gradually appearing in major cities.

Institutions Are Following the Public's Lead

The public sector is also embracing crypto. In March 2025, the government permitted YPFB, Bolivia's state-owned energy company, to utilize digital assets for fuel imports, citing the country's acute dollar shortage.

This marked a historic moment, the first time Bolivia officially extended crypto use beyond private transactions into public financial operations.

The central bank has committed to issuing quarterly reports on crypto activity and is coordinating with the tax authority to integrate wallet analytics with the VAT system. At the same time, banks are required to file daily reports on crypto outflows and screen accounts against international sanctions lists.

Guardrails and Education: Managing the Risks

Despite the optimistic adoption wave, Bolivian authorities are treading carefully. A new digital finance decree (Supreme Decree 5384) issued in May 2025 mandates anti-money laundering rules, licensing frameworks for crypto companies, and clear guidelines for custody, token issuance, and blockchain use. ASFI has 40 working days to implement the regulations.

Meanwhile, the BCB is rolling out a nationwide literacy campaign with live workshops in all nine departments. The focus is on teaching citizens how to manage wallets, avoid scams, and understand volatility safely. Officials warn that custodial wallets are not covered by deposit insurance, and deepfake scams targeting WhatsApp users in La Paz are a growing concern.

Crypto: Lifeline or Red Flag?

While adoption is booming, not everyone sees it as a healthy trend. Former Central Bank head Jose Gabriel Espinoza warned that the surge in crypto use may signal desperation, not innovation. "It's a reflection of deteriorating household purchasing power,” 

He said,

 casting doubt on whether crypto can provide proper economic stability.

Economists caution that Bitcoin and other volatile assets are risky hedges. However, for many Bolivians, the choice is no longer between fiat and crypto, but rather between preserving their savings or watching them disappear.

In conclusion, Bolivia's embrace of cryptocurrency is a real-time case study in what happens when traditional financial systems falter. With inflation soaring, the Boliviano falling, and trust in local institutions eroding, crypto is stepping in not just as an investment but as a practical tool for survival.

As new regulations and education efforts take shape, Bolivia may soon serve as a model or a warning for other emerging economies wrestling with similar challenges.