Bolivia has authorized his state -running energy company, YPFB, to use crypto for fuel import, while the country is struggling with a deteriorating dollar shortage and fuel crisis.
The government approved the switch to support fuel subsidies and to protect essential energy supplies in the midst of decreasing reserves for foreign currency.
Gas stations in Bolivia have seen long lines while fuel deficits persist. Protests have broken out in different regions because citizens have to deal with growing problems with access to fuel.
Years of declining natural gas production and decreasing exports have forced Bolivia to rely more on import, but a lack of dollars has complicated payments to foreign suppliers.
An YPFB spokesperson confirmed that the crypto transactions system is now present and that the company is planning to carry out transactions using digital assets. A government official clarified that YPFB has not yet carried out a crypto payment, but is planning to do this quickly.
Shifting attitude
The Central Bank of Bolivia initially forbade crypto in 2020, stating concern about financial stability and illegal transactions. However, the country turned its position and lifted the ban in 2024.
The government’s decision to allow crypto payments for fuel imports, marks an important policy shift. Other Latin -American countries that are confronted with currency rises, such as Venezuela and Argentina, have also focused on digital assets to facilitate trade in the midst of financial limitations.
Bolivia’s economic struggle stems from its dependence on the export of natural gas, which have steadily decreased. Brazil and Argentina, once large buyers of Bolivian gas, have reduced their dependence on the supply of the country. A lack of new gas discoveries and foreign investments have deteriorated the crisis, which limits Bolivia’s ability to generate foreign reserves for imports.
Details unclear
YPFB did not disclose which cryptocurrencies will use it or that it will convert digital assets into Fiat -Maluta before it makes payments. It is also unclear whether the company will keep assets in reserve.
Moreover, the government has not detailed how it will manage the volatility that is linked to crypto. It also remains unclear whether suppliers accept direct crypto payments or need an intermediary.
Bolivia’s step to use crypto for energy transactions emphasizes the in -depth economic crisis and the urgency of the government to protect fuel resources. If successful, the policy can reform the financial strategy of the country and indicate a broader shift to digital assets.
