Payments are now being accepted in Tether at Toyota, Yamaha, and BYD in Bolivia, as businesses increasingly shift to stablecoins to navigate the nation’s US dollar shortage.
A major step in the Latin American country’s crypto adoption is marked by three major international vehicle manufacturers starting to accept Tether in Bolivia to navigate its collapsing US dollar reserves.
It was shared by Tether CEO Paolo Ardoino that Toyota, Yamaha, and BYD are now taking Tether USDT for payment on Sunday. This follows the confirmation by crypto security firm BitGo that a buyer had used USDT to purchase the first Toyota in Bolivia on Saturday.
A dealership is shown displaying signs that advertise USDT as an “easy, fast, and safe” payment option for car purchases, in pictures shared by Ardoino.
BitGo Partners with Tether and Toyota Bolivia as Nation Embraces Crypto
A partnership with Tether and Bolivia Toyota was formed by BitGo to assist with self-custody and ensure the smooth flow of transactions.
In June 2024, Bolivia’s long-standing crypto ban was lifted, allowing banks to process Bitcoin and stablecoin transactions. The nation had been one of Latin America’s last crypto holdouts until then.
The Bolivian state-owned oil and gas firm Yacimientos Petrolíferos Fiscales Bolivianos was given government approval in March to begin accepting crypto for fuel imports. This served as a solution to the country’s worsening US dollar shortages.
A staggering 98% fall in Bolivia’s foreign exchange reserves, from $12.7 billion in July 2014 to $171 million this August, is shown by Trading Economics data. Although the Bolivian boliviano is the most widely used currency, fears over it losing purchasing power have pushed many locals to prefer more stable alternatives like the US dollar or, in some cases, crypto.
Bolivia’s top bank even signed a memorandum with El Salvador in late July to accelerate crypto adoption, and crypto was called a “viable and reliable alternative” to fiat currencies by the bank.
In an effort to handle the currency crisis, basic items at Bolivian airport shops have been priced in USDT.
Bolivian Businesses Turn to Stablecoins for International Trade
It was told to Bitfinex by TowerBank’s head of digital assets, Gabriel Campa, that Bolivian businesses that import products have also been using USDT to work around US dollar shortages.
They purchase stablecoins either locally or via offshore bank accounts, convert them to US dollars, and pay overseas suppliers. Subsequently, some of those products are priced in USDT, which, he said, allows for a stablecoin circular economy that keeps commerce and operations flowing.
Bolivia’s Political Future to Be Decided in October
A run-off vote will be held in Bolivia on Oct. 19 between Rodrigo Paz Pereira’s Christian Democratic Party and Jorge “Tuto” Quiroga’s Freedom and Democracy alliance.
A plan to use blockchain technology for greater transparency was proposed by Paz Pereira to tackle corruption, while Quiroga’s position on crypto remains less clear.
The victorious party will lead Bolivia, after a nearly two-decade period under the Movement for Socialism. This party has been widely blamed for the country’s current economic crisis.
