Bolivia's state-owned energy firm YPFB will begin using cryptocurrency to pay for fuel imports as the country grapples with a shortage of US dollars and dwindling natural gas production.
Bolivia's Dollar Shortage and Fuel Crisis
The decision to adopt digital assets for purchasing energy supplies follows government approval as Bolivia struggles to maintain fuel subsidies amid declining foreign currency reserves. Long lines at gas stations and scattered protests highlight the worsening fuel crisis.
Bolivia's Dwindling Energy Supply
Once a net energy exporter, Bolivia has seen its gas production dwindle due to a lack of major new discoveries, forcing it to rely on imports. Santa Cruz recently faced a severe diesel shortage, leading to blockades and strike threats. Farmers in Concepción and Yapacaní protested by blocking highways, disrupting trade, and jeopardizing their summer harvest. Public transport operated at reduced capacity.
Bolivia's Renewable Energy Plans
Bolivia’s Ministry of Hydrocarbons and Energy has announced a plan to expand the national electricity system by 5,290 MW from 2026 to 2050, prioritizing renewable energy sources like wind, solar, hydroelectric, and geothermal power. This initiative aims to enhance energy security, sustainability, and Bolivia’s leadership in renewable energy.
A government official confirmed that while the company has not yet used digital currencies for payments, plans are in place to do so.
