Woofun AI reports that Bolivia is conducting a technical review to integrate Tether (USDT) into its national payment system, a move confirmed by Minister of Economy and Public Finance José Gabriel Espinoza. This proposal represents a fundamental departure from previous prohibitions, positioning the stablecoin to circulate officially alongside the U.S. dollar and the Bolivian boliviano.

The evaluation focuses on the technical and economic viability of embedding USDT within existing financial infrastructure. Authorities are assessing compatibility with current payment rails and regulatory frameworks, though the process remains in early stages without a defined timeline for implementation.

Historically, Bolivia maintained a restrictive stance, with the central bank banning Bitcoin and other digital currencies in 2014 due to financial stability and consumer protection concerns.

However, policy shifted in June 2024 when the central bank lifted the blanket ban, permitting financial institutions to engage in cryptocurrency transactions through authorized electronic channels.

Per Woofun AI, the potential inclusion of USDT, the world’s largest stablecoin by market capitalization, addresses critical economic vulnerabilities. Official integration could provide a stable alternative to the boliviano amidst high inflation and currency volatility, while facilitating cross-border payments and remittances that constitute a significant portion of the national economy.

This development signals a broader regulatory shift across Latin America, encouraging other nations to explore similar frameworks. The outcome will be closely watched by regional policymakers and global crypto markets as it marks a clear departure from prior regulatory rigidity.