Bolivia Adopts USDT as Foreign Exchange Reserves Dwindle: Stablecoin Emerges as Financial Safety Net During Turmoil

Toyota, BYD, and Yamaha have started to accept Tether’s

stablecoin for buying vehicles in Bolivia, representing a noteworthy development as the nation faces an acute foreign currency shortage. This change comes after Bolivia reversed its cryptocurrency prohibition in 2024, opening the door for digital currencies to help address the collapse of the dollar market. Data from Trading Economics shows Bolivia’s foreign reserves have fallen dramatically—dropping 98% from $12.7 billion in 2014 to just $171 million by August 2025. As a result, people are turning to stablecoins like USDT to protect their spending power. CEO Paolo Ardoino verified the move, describing USDT as a “digital dollar” for hundreds of millions in developing economies. BitGo confirmed the first USDT-based sale in Bolivia, and dealerships are now advertising the payment option as “simple, quick, and secure” Toyota, Yamaha, and BYD Accept Tether in Bolivia Amid Dollar Crisis [ 1 ].

The rapid uptake of stablecoins is part of a larger shift across Latin America. From January to June 2025, crypto transactions in the region reached $294 million—a 630% jump from $46.5 million in 2024 Toyota, BYD, and Yamaha Now Accept USDT Payments in Bolivia, Tether CEO Confirms [ 2 ]. Argentina, Brazil, and Venezuela are leading stablecoin adoption, spurred by inflation, currency devaluation, and remittance requirements. Bitso analysis shows 71% of Latin American businesses now use stablecoins for international payments, the highest rate worldwide. In Bolivia, state oil firm YPFB started accepting crypto for fuel imports in March 2025, and more airport shops and importers are listing prices in USDT.

Tether’s growth in Bolivia is in sharp contrast to its retreat from Uruguay, where it will cease

mining activities by 2025 due to prohibitive energy expenses. The Uruguayan state utility UTE cut off two of Tether’s mining sites in July 2025 after a $5 million unpaid electricity bill. Tether had invested over $100 million in these operations, hoping to benefit from Uruguay’s 95% renewable energy supply, but high fees and mounting debt made the project unsustainable. The company now intends to move its mining operations to Brazil, partnering with to pursue renewable energy mining Stablecoins Take Center Stage in Latin America: Bitso Business Report [ 4 ].

The stablecoin sector in Latin America is evolving quickly. A 2025 Bitso Business report found that institutional use of stablecoins in the region more than doubled between the second half of 2024 and the first half of 2025, with treasury management, arbitrage, and forex operations driving adoption. Mexico remains the top market, followed by Brazil and Colombia, while Argentina’s share of stablecoin transactions has reached 61.8%. Tether’s USDT now makes up 58.9% of the stablecoin market, boasting a $171.5 billion market cap and highlighting its central role in the regional financial system Crypto Adoption in Latin America 2025: Stablecoins, Regulation, and Market Trends [ 5 ].

The contrast between Bolivia’s embrace of crypto to stabilize its economy and Uruguay’s withdrawal from mining highlights the complex relationship among government policies, energy dynamics, and market needs in Latin America. As countries such as Bolivia turn to digital assets to support trade and manage inflation, others like Uruguay encounter significant challenges with the sustainability of energy-heavy crypto mining. Together, these developments underscore the importance of stablecoins as both a tool for economic stability and a proving ground for financial technology innovation in the region.