TLDR
- Toyota, Yamaha, and BYD dealerships in Bolivia now accept Tether (USDT) payments
- Bolivia’s USD reserves crashed 98% from $12.7 billion to $171 million since 2014
- First large-scale automotive crypto payment system in Latin America
- Bolivia reversed its crypto ban in June 2024 due to dollar shortage crisis
- Tether simultaneously exits Uruguay mining operations after power dispute
Bolivia’s economic crisis has reached a tipping point, forcing major automotive brands to embrace cryptocurrency payments. Toyota, Yamaha, and BYD dealerships now accept Tether (USDT) through exclusive dealer Toyosa, marking Latin America’s first large-scale automotive crypto payment system.
The move comes as Bolivia faces an unprecedented dollar shortage. The country’s foreign exchange reserves have plummeted 98% from $12.7 billion in July 2014 to just $171 million by August 2024. This collapse has left businesses and consumers struggling to access US dollars for transactions.
Toyosa partnered with crypto custody firm BitGo and Panama-based Towerbank to process USDT transactions. Tether CEO Paolo Ardoino confirmed the first Toyota purchase using USDT occurred over the weekend. Dealerships now display signs promoting USDT as an “easy, fast, and safe” payment method.
Bolivia was among Latin America’s last crypto holdouts until economic pressure forced change. The government lifted its cryptocurrency ban in June 2024, allowing banks to process Bitcoin and stablecoin transactions. The regulatory shift came as traditional payment systems failed to meet business needs.
Stablecoins Fill Payment Gap
Bolivian businesses have increasingly turned to USDT to navigate dollar shortages. Import companies buy stablecoins locally or through offshore accounts, convert them to dollars, and pay international suppliers. Some businesses now price products in USDT, creating a circular crypto economy.
The crisis extends beyond automotive sales. Airport shops price basic items in USDT, while Bolivia’s state oil company received approval to accept crypto for fuel imports. The country’s top bank called cryptocurrency a “viable alternative” to traditional currencies.
Local businesses importing goods rely heavily on stablecoin workarounds. They purchase USDT through various channels, exchange for dollars when needed, and maintain operations despite the banking system’s dollar limitations. This process has become standard practice for maintaining international trade relationships.
Regional Crypto Developments
While Bolivia embraces crypto payments, Tether faces setbacks elsewhere in the region. The company is shutting down mining operations in Uruguay after failed negotiations with state utility UTE. Tether sought better power rates and fee exemptions but couldn’t reach agreement with the power company.
The Uruguay exit contrasts sharply with Bolivia’s crypto embrace. Negotiations between Tether and UTE began in 2023 but stalled when the utility refused improved terms. Tether had planned to make Uruguay a regional mining hub before abandoning operations.
Moneygram has launched stablecoin remittances in Colombia, allowing users to hold USDC directly. The service eliminates forced conversion to local currency, giving users more control over their digital assets.
Bolivia faces crucial elections in October with candidates offering different approaches to the crisis. Rodrigo Paz Pereira proposes blockchain technology for government transparency, while Jorge Quiroga’s crypto position remains unclear. The winner will inherit an economy transformed by cryptocurrency adoption.
