In the bustling streets of Cochabamba, Bolivia, a quiet financial revolution is unfolding. Shoppers insert boliviano coins into cryptocurrency ATMs, beauty salons offer discounts for Bitcoin payments, and fried chicken is bought using Binance accounts. Amid a deepening economic crisis marked by vanishing dollar reserves, soaring inflation, and fuel shortages, Bolivians are increasingly turning to digital currencies as a practical alternative to their rapidly depreciating national currency.
The boliviano has lost more than half its value on the black market in just one year, while the official exchange rate remains artificially fixed at around 6.9 bolivianos per U.S. dollar—far from reality. On the streets, people pay over 16 bolivianos for a single dollar, highlighting a severe disconnect between government policy and economic conditions.
A Shift Toward Digital Assets
Faced with this instability, many individuals and small businesses are adopting cryptocurrencies like Bitcoin, Tether (USDT), and other digital assets as tools for preserving value and facilitating daily transactions. Although cryptocurrency was officially banned in Bolivia until recently, informal usage has surged, particularly through peer-to-peer platforms and global exchanges such as Binance.
Despite limited official data, early reports indicate growing traction. According to Bolivia’s central bank, digital asset transactions reached $24 million in October alone—a figure analysts believe has since risen significantly. While still small compared to Argentina or Venezuela, Bolivia’s adoption curve mirrors that of other Latin American nations experiencing similar economic stress.
Mauricio Torrelio, head of the Bolivian Blockchain Chamber, notes that “Bolivia is now comparable to countries like Argentina and Venezuela” in terms of crypto adoption speed. He attributes much of this growth to Binance’s popularity, thanks to its low fees and accessible P2P trading system.
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Real-World Use Cases on the Rise
In Cochabamba, real-world applications of crypto are becoming increasingly common. At Pablo Unzueta’s steakhouse, Bros, customers can pay directly via Binance or use a crypto ATM linked to Blink, a wallet developed in El Salvador—the first country to adopt Bitcoin as legal tender.
Unzueta demonstrates the process by inserting a single one-boliviano coin (about $0.14) into the machine, converting it into Bitcoin. “If you go to the banks today, they don’t have dollars,” he explains. “Paying for a chicken with Bitcoin or saving in Bitcoin is the most innovative and promising thing a city like Cochabamba can do.”
This shift isn’t limited to restaurants. Carla Jones, owner of a local spa and salon, incentivizes crypto payments by offering discounts—such as reduced rates on tanning sessions when paid in Bitcoin. For her, it’s both a customer acquisition strategy and a financial safeguard.
“It’s a way to keep my money safe and also try to grow my wealth,” Jones says, emphasizing how digital assets help protect against boliviano depreciation.
Stablecoins Fill the Dollar Gap
With hard currency in short supply, stablecoins like Tether (USDT)—pegged to the U.S. dollar—are playing an outsized role in daily commerce. In Santa Cruz, Tether CEO Paolo Ardoino shared images of a duty-free shop where items like sunglasses and Oreo cookies were priced in USDT.
“A silent revolutionary shift: digital dollars powering daily life, commerce, and economic stability,” he posted on X (formerly Twitter).
For many Bolivians, USDT functions as a de facto dollar substitute—offering price stability and cross-border utility without requiring physical greenbacks.
However, experts caution against viewing this trend as a sign of economic health.
“This is not a sign of stability,” warns Jose Gabriel Espinoza, former head of Bolivia’s central bank. “It’s more a reflection of the deteriorating purchasing power of households.”
He estimates that daily USDT transaction volumes hover around $600,000—small compared to the $18–22 million in formal financial channels and $12–14 million in the informal cash-based black market.
Risks and Ethical Concerns
While crypto adoption offers short-term relief, risks remain significant. The volatile nature of digital assets poses dangers for users unfamiliar with market fluctuations. Peter Howson, assistant professor in international development at Northumbria University, warns of what he calls “crypto-colonialism”—a phenomenon where global crypto firms target financially vulnerable populations with high-risk investment schemes.
“We’ve seen in Bolivia and across Latin America how crypto companies try to convince the rural poor to invest what little real money they have,” Howson told Reuters. “When the price drops, no vendor wants to accept it.”
Andree Canelas, a 35-year-old Bitcoin advocate installing crypto ATMs across Cochabamba, acknowledges these risks but believes the long-term benefits outweigh them.
“More and more people have understood that if they save bolivianos and keep them in their tills for too long, they’re going to lose purchasing power,” Canelas says. “They may see some volatility in the short or medium term, but long term it’s a good store of capital.”
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FAQ: Cryptocurrency Adoption in Bolivia
Q: Why are Bolivians turning to cryptocurrency?
A: Due to high inflation, currency devaluation, and a shortage of U.S. dollars, many Bolivians use crypto as a way to preserve value and conduct everyday transactions.
Q: Is cryptocurrency legal in Bolivia?
A: Previously banned, cryptocurrency is now tolerated in practice despite lacking full regulatory approval. Informal usage has grown rapidly since restrictions eased.
Q: Which cryptocurrencies are most popular in Bolivia?
A: Bitcoin and Tether (USDT) are the most widely used, with USDT favored for its dollar peg and stability.
Q: How are small businesses using crypto?
A: Businesses accept crypto for payments, offer discounts for digital asset transactions, and use platforms like Binance and ATMs linked to wallets like Blink.
Q: What are the risks of using crypto in Bolivia?
A: Price volatility, lack of consumer protection, and potential exploitation by foreign firms pose real dangers—especially for low-income users.
Q: Can I use crypto ATMs in Bolivia?
A: Yes—especially in cities like Cochabamba and Santa Cruz—where machines allow users to convert bolivianos into Bitcoin or other digital assets.
The Road Ahead
While still in its infancy, Bolivia’s grassroots crypto movement reflects broader trends across Latin America—where digital currencies are increasingly seen not as speculative assets but as tools for financial survival. As trust in traditional institutions wanes, blockchain-based solutions offer new pathways for commerce and savings.
Yet sustainability depends on education, infrastructure, and responsible innovation—not just technological access.
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As Andree Canelas puts it: “The idea is to move away from the piggy bank and instead use this technology.” In Bolivia’s current climate, that future may be arriving faster than anyone expected.
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