Bolivia Turns to Stablecoins for Economic Stability and to Attract Investment

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Bolivia Turns to Stablecoins for Economic Stability and to Attract Investment

Bitget-RWA2025/11/26 13:32

By:Bitget-RWA

- Bolivia accelerates stablecoin integration into its financial system to stabilize the economy and attract investment, allowing banks to offer crypto-based services as legal tender. - The policy follows 2024's crypto ban removal, addressing currency depreciation and aligning with President Paz's market-oriented agenda to reverse economic stagnation through $9B in multilateral loans. - Gold mining formalization and a public-private gold bank aim to ensure environmental compliance, while fiscal reforms incl

Bolivia's administration is moving quickly to incorporate stablecoins into the official financial sector, as part of a comprehensive plan to boost economic stability and draw in investors. Economy Minister José Gabriel Espinoza revealed that this initiative will permit banks to provide crypto-related products like savings accounts, credit cards, and loans, making stablecoins a recognized payment method.

as reported

. This change in policy comes after the 2024 repeal of a previous ban on cryptocurrencies, which led to a surge in digital asset use as Bolivians sought protection from the weakening boliviano.

This program is a key element of President Rodrigo Paz's pro-market reforms, designed to counteract the economic slowdown brought on by years of heavy state intervention and nationalization by the former government. At present, Bolivia is

in talks for over $9 billion in loans from multilateral organizations

such as the World Bank and CAF, with the funds earmarked for infrastructure, green energy, and private sector growth. Part of the financing will also be used to formalize gold mining and establish a public-private gold bank to promote environmental standards and traceability in the industry.

Bolivia Turns to Stablecoins for Economic Stability and to Attract Investment image 0

Espinoza highlighted that bringing stablecoins into the banking sector is not just a regulatory adjustment but a calculated effort to align with global financial developments. "Cryptocurrencies can't be regulated worldwide, so it's better to acknowledge them and use them strategically," he explained, adding that the policy could broaden financial access by offering alternatives to an unstable national currency. The administration has also eliminated a wealth tax and

plans to cut public expenditure by 30% for 2026

, marking a move toward tighter fiscal management while still upholding social protections.

This move mirrors a wider trend across Latin America, where countries are dealing with both economic uncertainty and the expansion of decentralized finance. While some, like Spain, are introducing strict crypto taxation, Bolivia is opting for a more open stance. Espinoza's team is also working to formalize the gold mining industry and overhaul fuel subsidies by shifting distribution to private companies, with state-run YPFB continuing operations in isolated regions.

Bolivia anticipates re-entering global credit markets by late 2026 or early 2027, with $5 billion in multilateral loans designated for private sector initiatives. The government has emphasized its autonomy from IMF influence, maintaining authority over debt decisions while staying receptive to discussions. Espinoza stressed that default is not being considered, especially with a $333 million eurobond payment due in March 2026.

The adoption of stablecoins will likely attract attention from international regulators and investors, but it highlights Bolivia's commitment to updating its financial system in a challenging economic climate. As the country manages this shift, the effectiveness of its crypto-forward policies will depend on striking a balance between fostering innovation and maintaining regulatory controls, ensuring digital assets contribute to stability rather than increased risk.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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