Amid soaring inflation and a plunging local currency, more Bolivians are turning to cryptocurrency for everyday transactions, according to a Reuters report. With inflation at the highest in 40 years and dollar reserves nearly exhausted, the national currency, the Boliviano, has lost about half its value on the black market. This has led consumers and small businesses to hedge against steady economic decline.
From steak houses to beauty salon’s everyone in Bolivia is softening up to the idea of making payments with Bitcoin or other cryptocurrencies. Among traditional ATMs, those where Bolivian shoppers swap coins for cryptocurrencies are gaining prominence. Many merchants are now accepting SOL via Binance-linked wallets or use Blink wallet-linked ATMs to pay for meals.
The Reuters report shows that Tether (USDT) volumes are estimated at around $600,000 daily, compared to $18–22 million in formal finance or $12–14 million in the cash-based parallel market.
Reliable data is limited, and Bolivia only lifted its ban on cryptocurrency last year. However, the latest figures from the central bank recorded $24 million in digital asset transactions as of October, with analysts suggesting that number has grown considerably since then.
But some are skeptical about the growing use of cryptocurrencies. Former central bank head Jose Gabriel Espinoza warned that the crypto uptake reflected a “deteriorating purchasing power” rather than economic strength.