Dollar-Strapped Bolivia to Rely on Cryptocurrency for Energy Imports

Bolivia has integrated a crypto-powered system to pay for fuel imports through its state-owned company YPFB, as it is facing a shortage of dollars and a reduction in its dollar-denominated foreign reserves.

Bolivia Builds Crypto System to Pay for Fuel Imports

Crypto is becoming relevant for the operation of the supply chain in several countries around the world. According to a spokesperson of YPFB, the largest state-owned energy company in Bolivia, the company is prepared to rely on cryptocurrency payments to bring fuel and other energy imports to the country.

YPFB has already designed a system capable of accounting for payments made in crypto due to the scarcity of dollars and dollar-denominated assets that Bolivia has been facing for some time.

The spokesperson, who stated that the system was put in place to support the national subsidy policy for fuel purchases, stated:

From now on, these (cryptocurrency) transactions will be carried out.

According to Reuters, the announcement was confirmed publicly by government officials, who recognized that the system had been put in place and that the company intended to use it, but that it had not been employed yet.

While the move does not explicitly mention stablecoins, government officials have referred to the usefulness of these instruments as dollar proxies. In July, central bank president Edwin Rojas Ulo highlighted the utility of stablecoins and their potential benefits, stating that using them was “as if one were trading in North American currency, although what one is doing are operations with these digital assets.”

Read more: Central Bank of Bolivia States Crypto Might Be Beneficial, Remarks Stablecoins Utility as Dollar Proxy

This move marks the latest development in the country as the central bank unbanned the use of cryptocurrency last year, opening the doors for users to make crypto purchases and sale transactions using their bank accounts.

Since the bank lifted this blanket ban, the country has experienced a crypto renaissance period, with crypto volumes skyrocketing. Also, other proposals including crypto to dynamize the local economy using USDT, a dollar-pegged stablecoin, have surged.

Read more: Bolivian Attorneys Spearhead USDT Index Proposal to Energize a Dollar-Starved Economy