- Bitcoin and USDT are now widely accepted in small businesses.
- The new bank policies promote the use of crypto and its security.
In mid-2024, Bolivia abolished its crypto restriction, boosting its industry. The volume of digital asset transactions increased by more than 530 percent in the previous year, reaching the level of $294 million in the first half of 2025 alone.
In general, the number of crypto transactions that reached a total of 430 million was facilitated mostly by retail customers and small businesses nationwide.
The boom is a sign of a significant change after many years of strict prohibition. Bolivia had banned cryptocurrencies in order to protect its national currency and financial system. The prohibition was lifted in June 2024, and controlled crypto payments and new financial instruments appeared.
The change of such a policy rekindled the attention of people and businesses in Bitcoin and other stablecoins like USDT that have become common on the street and at universities.
Why Is Bolivia’s Crypto Economy Exploding?
Bolivia’s rapid adoption stems from multiple factors. To start with, transparency of regulation came in the form of lifting the ban, which allowed the use of crypto in a safer way.
Banco Union launched its USDT storage, furthering its legitimacy and trust. This adoption of stablecoins facilitated with the support of banks would play a significant role in convincing users afraid of volatility.
Furthermore, economic strains fueled the crypto rise. There was a drastic decline in foreign currency reserves, which made the availability of dollars a problem in Bolivia. To counter this, a large number of Bolivians have resorted to cryptocurrencies as a store of value against inflation and shortages of dollars.
This enabled them to maintain imports, settle bills, and deal with remittances despite financial difficulties.
Some of the most important factors include the application of virtual currencies in daily business activities. Bitcoin and USDT are circulated even among small sellers who generally have no access to banking.
Bolivia’s central bank stated that crypto payments have had a significant effect on the performance of micro and small businesses. They observed that digital currencies assist in meeting remittance, small purchases, and the necessary payments in the various sectors of Argentina and the families.
New Financial Landscape: Bank-Backed Crypto and Regulatory Push
Lifting of the ban in Bolivia was accompanied by a good regulatory framework. The standards of the international financial system, such as the Financial Action Task Force of Latin America (GAFILAT), regulate the providers of virtual assets.
This model protects against organized money laundering and increases consumer protection, and stimulates financial innovation.
Interestingly, the support of USDT tokens by Banco Uni6n has enhanced confidence. Using stablecoins pegged to fiat currency, Bolivians do not have to face price fluctuations that are characteristic of cryptocurrencies.
Regional cooperation also influences the change. Bolivia recently teamed up with the Digital Assets Commission in El Salvador to exchange experience and create crypto tool. The collaboration is an indication of Bolivia taking a step forward to incorporating the latest digital finance technologies in a broader manner.
