Bolivia-owned firm YPFB is planning to use cryptocurrency to pay for energy imports, According to In a March 13 report from Reuters. The move came as the country in South America faced a lack of foreign currency reserves and a growing supply of domestic gas manufacture.
A spokesman for the YPFB said a system was placed to use cryptocurrency to buy energy imports after the government approved the use of digital assets to meet the country’s demands. While the YPFB has not used the system, it plans to do so.
The report does not disclose what the cryptocurrency will use for payments. Stablecoins, which are digital assets peg into fiat currency, are often used to make cross-border transactions, even though it is unclear if that happens in Bolivia.
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The fuel Lack In Bolivia led to protests and the threat of strikes to some of the country’s workers, including farmers, saying that the lack of fuel threatens their reapance in the Tag -warming. Only 35% –50% of the country’s public transportation system works. Alejandro Gallardo, the Minister of Energy and Hydrocarbons, said there were challenges due to foreign currency deficiencies.
The spokesman for the YPFB noted that the new purchase system was designed to support the national fuel subsidy in the country amid a lack of foreign currency. “From now on, these transactions (cryptocurrency) will be performed,” they said.
Related: Vibe Killers: Here are the countries that moved to Outlaw Crypto last year
Crypto adoption in Bolivia increases
In June 2024, the Central Bank of Bolivia, Banco Central de Bolivia, Raised its prohibition In Bitcoin (Btc) and crypto payment, which allows financial institutions to interact with digital properties. The ban is in place Since 2014.
In September 2024, Bolivia reported a 100% increase in virtual asset tradingwith approximately $ 15.6 million worth of properties exchanged on a monthly basis between July and September. The $ 48.6 million exchanged is mainly made up of stablecoins. Stablecoins are often used in developing countries that local currency has experienced a high degree of lowering or where there is a lack of foreign currency.
Related: Stablecoins will see an explosion of growing in 2025 as the world embraces the asset class
Stablecoin’s use gained additional momentum in Bolivia in October 2024 when the local bank Banco has introduced a Careful Service to Stablecoin. That service, supported by the country’s financial regulator, allows residents of the country to buy, sell and sell USDT (USDT), a US dollar-pegged stablecoin.
Cointelegraph wrote in September 2016 that Bolivia is plenty to get from adopting cryptocurrencies. At that time, most citizens of that country were not formed, with only 11% of residents using a debit card to make payments and only 5% using credit cards. However, the country continues to promote its ban until 2024, Calling the crypto of a pyramid scheme in May 2017 and arresting crypto advocates.
Magazine: Bitcoin payments are weakened by centralized stablecoins
