Bolivia is exploring the introduction of the Tether stablecoin as a full-fledged currency in the country

Bolivian authorities are considering the possibility of integrating the USDT stablecoin into the national payment system. The country’s Minister of Economy, Espinosa, stated that the initiative is currently being evaluated and ways to implement it are being explored.

«The goal is for the Tether stablecoin to circulate as another currency—alongside the boliviano and the U.S. dollar,» the minister said.

According to Espinosa, following the lifting of the ban on the use of cryptoassets, Bolivia still needs to establish a comprehensive regulatory framework to govern this market. The new legislation must take into account international requirements regarding anti-money laundering and countering the financing of terrorism.

The minister also criticized the previous government’s decision to use USDT as an alternative to the U.S. dollar amid economic difficulties—this approach did not solve the existing problems and only exacerbated market instability. Before any potential integration of stablecoins into the payment system, rules for the circulation of digital assets must be developed in accordance with FATF recommendations, the Minister of Economy emphasized.

Since last summer, Bolivia has been on the FATF’s «gray list» as a jurisdiction under enhanced monitoring.

Previously, analysts at the Dune platform concluded that the USDT and USDC stablecoins have effectively ceased competing with each other, occupying different niches in the cryptocurrency market. USDT dominates the payments and settlements sector, while USDC is more commonly used by decentralized finance (DeFi) protocols.