Bolivia's state-owned energy firm YPFB plans to use cryptocurrency to pay for energy imports. This move addresses the nation's foreign currency shortage and dwindling domestic gas production.
Cryptocurrencies Supporting Energy Imports
A spokesperson for YPFB stated that a system has been put in place to purchase energy imports using cryptocurrency following government approval. While the system has not been used yet, YPFB intends to proceed with it. The report does not specify which cryptocurrency will be used, although stablecoins are often used for cross-border transactions. Protests and threats of strikes have arisen in Bolivia due to the fuel shortage, with workers, including farmers, expressing concern over their summer harvest.
Growing Crypto Adoption in Bolivia
In June 2024, Bolivia's central bank lifted its ban on Bitcoin and crypto payments, enabling financial institutions to transact using digital assets. By September 2024, Bolivia saw a 100% rise in virtual asset trading, with stablecoins being a significant part, especially in developing countries facing currency devaluation and foreign currency shortages.
Historical Perspective on Crypto Adoption
Previously, Cointelegraph noted Bolivia's potential gains from cryptocurrency adoption, as much of its population was unbanked. However, Bolivia maintained its crypto ban until 2024, labeling cryptocurrencies as pyramid schemes and arresting advocates.
Bolivia's embrace of cryptocurrency marks a significant step towards economic resilience and utilizing digital assets for contemporary economic challenges. This opens up new opportunities for trade and financial transactions.
