Bolivia crypto transactions up over 530% amid currency woes
A waiter collects a diner's bill in cryptocurrency, as Bolivians are increasingly turning to cryptocurrencies and exchange platforms like Binance as a shortage of dollars and high inflation force savers to look for alternatives, in Cochabamba, Bolivia June 12, 2025. REUTERS/Claudia Morales
(Reuters) -Bolivia's central bank on Friday reiterated a dramatic uptick in transactions of digital assets, following a Reuters report that showed how more Bolivians were turning to crypto exchanges like Binance and stablecoins like Tether as a hedge against the depreciation of the local boliviano currency.
According to new figures published on Friday by the Bolivian central bank, transactions using Electronic Payment Channels and Instruments for Virtual Assets (VA) soared more than 530%, from $46.5 million in the first half of 2024, to $294 million in the same period of 2025.
New figures showed monthly transactions at a record $68 million in May.
"These tools have facilitated access to foreign currency transactions, including remittances, small purchases and payments, benefiting micro and small business owners across various sectors, as well as families nationwide," the bank said in a statement.
Cryptocurrencies were outlawed in Bolivia until June last year. Since the ban was lifted, transaction volumes reached $430 million across more than 10,000 individual operations, the bank said.
The Bolivian government was working on a "comprehensive regulatory framework for financial technology companies," that aligns with international standards set by the Financial Action Task Force of Latin America (GAFILAT), the bank added.
Bolivians are facing an acute economic crisis, with reserves of dollars near zero, inflation at 40-year highs and fuel shortages causing long lines at the pump.
The South American country's currency has lost half its value on the black market this year, even as the official exchange rate has been held artificially steady by governmentintervention.
That has meant more Bolivians are looking for alternatives to protect their savings and make transactions. Crypto proponents have pushed blockchain-based tokens as an answer, though economists warn that these digital offerings come with risks.
"This (crypto uptick) isn't a sign of stability," said former central bank head Jose Gabriel Espinoza. "It's more a reflection of the deteriorating purchasing power of households."
(Reporting by Lucinda Elliott in Montevideo and Daniel Ramos in La Paz. Editing by Diane Craft)
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