Crypto Use in Bolivia Surges Over 530% Amid Currency Crisis

The Bolivian central bank has confirmed a dramatic rise in the use of digital currencies, as citizens increasingly turn to crypto to shield themselves from the country’s deepening financial instability.

According to new data released Friday, cryptocurrency transactions through digital payment platforms and virtual asset tools surged by over 530%, jumping from $46.5 million in the first half of 2024 to a staggering $294 million in the same period of 2025.

May alone saw record-breaking monthly crypto activity, with transactions totaling $68 million, highlighting the growing reliance on digital assets like Binance and Tether (USDT) as a hedge against the plummeting value of the Boliviano.

“These financial instruments have opened up access to foreign currency operations, including remittances and day-to-day transactions, which have particularly helped small businesses and households nationwide,” the central bank said in a public statement.

Although cryptocurrencies were banned in Bolivia until mid-2024, the lifting of that restriction has fueled a sharp increase in activity. Since then, total transaction volumes have reached approximately $430 million, spread across more than 10,000 operations.

Amid this surge, the government has revealed plans to introduce a new regulatory framework for fintech and crypto-related services, in line with standards from Latin America’s Financial Action Task Force (GAFILAT).

Bolivia’s economy has been under severe strain, with foreign currency reserves nearly exhausted, inflation at levels not seen in four decades, and widespread fuel shortages triggering long queues. While the official Boliviano exchange rate remains fixed, the currency has lost about 50% of its value in the unofficial market this year alone.

This dire situation has pushed many Bolivians toward cryptocurrencies as an alternative store of value and transaction method. However, experts caution against viewing this shift as a sign of recovery.

“This spike in crypto usage doesn’t reflect financial stability,” said former central bank president José Gabriel Espinoza. “It’s more indicative of the falling purchasing power and economic uncertainty facing everyday households.”