FameEX Hot Topics | Toyota, Yamaha, and BYD Begin Accepting Tether in Bolivia as USD Reserves Decline

In a significant milestone for cryptocurrency adoption in Latin America, major international vehicle manufacturers Toyota, Yamaha, and BYD have begun accepting the stablecoin Tether (USDT) for payments in Bolivia. This strategic move is a direct response by businesses to navigate the country's severe and collapsing US dollar reserves. The announcement was made by Tether CEO Paolo Ardoino, who shared images from dealerships displaying signs promoting USDT as an “easy, fast, and safe” payment method for purchasing cars. This development marks a dramatic shift for a nation that was once one of the region's final holdouts against digital currencies.

This pivot towards crypto is a recent phenomenon. Until June 2024, Bolivia enforced a long-standing ban on cryptocurrencies. The government’s decision to reverse this policy and allow banks to process Bitcoin and stablecoin transactions opened the door for this new financial reality. The trend began even before the formal ban was lifted, with one of the first major adoption stories emerging in March when the state-owned oil and gas firm, Yacimientos Petrolíferos Fiscales Bolivianos, received government approval to accept crypto for fuel imports to circumvent the dollar shortage.

The root cause of this shift is a profound economic crisis. Data from Trading Economics reveals that Bolivia's foreign exchange reserves have experienced a catastrophic decline, plummeting by 98% from $12.7 billion in July 2014 to a mere $171 million as of August this year. While the Bolivian boliviano remains the most widely used currency domestically, widespread fear over its rapidly diminishing purchasing power has driven both businesses and individuals to seek more stable alternatives. This desperation for financial stability has made dollar-pegged stablecoins like USDT an increasingly attractive option.

The use of USDT has created a novel, practical solution for import-dependent businesses. According to Gabriel Campa, head of digital assets at TowerBank, these companies buy stablecoins either locally or through offshore bank accounts. They then convert them to US dollars to pay their overseas suppliers. Crucially, some of these imported products are now being priced and sold within Bolivia in USDT, effectively creating a stablecoin-powered circular economy that keeps essential trade and operations running smoothly despite the national currency crisis.

The impact of this change is already quantifiable. Bolivia's crypto market has experienced explosive growth, with daily USDT liquidity surging from a negligible $20,000 to nearly $1 million in under a year. The embrace of digital assets has moved beyond corporate policy to become a recognized national strategy; the country's top bank recently signed a memorandum with El Salvador to accelerate crypto adoption, explicitly calling it a “viable and reliable alternative” to fiat currencies during this period of acute economic distress.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.