Bolivians turn to crypto as inflation woes hit, transactions up 530%

Bolivians are increasingly embracing cryptocurrencies as they look to shield themselves against soaring inflation and persistent U.S. dollar shortages, Reuters reported.

The move, aligning with a broader outlook across the Latin America region, has driven up digital asset transactions, with this hitting over 530% in increased crypto usage.

Bolivia’s central bank released fresh data on this massive surge on Friday, June 27, 2025.

This surge in activity is largely seen as a defensive measure against the ongoing depreciation of the local Boliviano currency. The new figures released by the Bolivian central bank on Friday underscore a dramatic shift in financial behavior within the country.

Bolivians flock to crypto amid inflation woes

Cryptocurrency adoption, particularly stablecoins, continues to expand across the world, with companies such as Tether, Circle and Paxos major players.

In Bolivia, crypto is quickly becoming the currency of choice as the population grapples with runaway inflation. Friday’s figures, which echo findings from a recent Reuters report, highlight how citizens are turning to platforms like Binance and stablecoins such as Tether to navigate the depreciation of the boliviano, the national currency.

The central bank reported a staggering 530% increase in transactions involving Electronic Payment Channels and Instruments for Virtual Assets (VA).

In the first half of 2024, these transactions totaled $46.5 million, but by the same period in 2025, they skyrocketed to $294 million. May 2025 alone saw a record $68 million in monthly transactions, underscoring the rapid adoption of digital currencies in the South American nation.

Economic challenges

The shift comes as Bolivia grapples with economic challenges, including high inflation and limited access to foreign currency, which have eroded purchasing power and disrupted trade. Cryptocurrencies, once banned in Bolivia until June 2024, have emerged as a practical alternative for many. 

“These tools have facilitated access to foreign currency transactions, including remittances, small purchases, and payments, benefiting micro and small business owners across various sectors, as well as families nationwide,” the central bank’s report noted.

Since the lifting of the cryptocurrency ban, transaction volumes have reached $430 million across more than 10,000 individual operations. It only shows how the population continues to embrace the new financial tools. 

For many, digital currencies offer a way to bypass the constraints of a dollar-scarce economy, enabling cross-border payments and small-scale commerce that would otherwise be hampered by currency controls.

Regulation efforts

The central bank also signaled that the government is taking steps to regulate this burgeoning sector. 

It is developing a “comprehensive regulatory framework for financial technology companies” that aligns with international standards set by the Financial Action Task Force of Latin America (GAFILAT). This move aims to balance the growing popularity of cryptocurrencies with efforts to ensure financial stability and combat illicit activities.

These mirror regulatory efforts that are taking shape globally as governments take note of the benefits of integrating digital currencies into its financial system.

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