From now on, three large international car manufacturers accept Tether (USDT) as a means of payment in Bolivia. The step comes while the country is struggling with a shortage of American dollars and marks an important milestone in the growth of crypto currency in Latin America.
Toyota, Yamaha and BYD started taking Tether, Tether CEO Paolo Ardoino announced. Last weekend the first Toyota in Bolivia was settled with USDT, confirmed crypto company Bitgo. Photos show dealers with signs on which USDT is advertised as an easy and safe payment option.
Collaboration between car manufacturers and crypto company
Bitgo cooperates with Tether and Bolivia Toyota to ensure that transactions run smoothly and safely through self -management solutions. This should ensure more reliability and trust in the use of stablecoins for large purchases.
The development is remarkable, since Bolivia had a ban on crypto currency until June 2024. Since its cancellation thereof, banks can process transactions in Bitcoin and Stablecoins. As a result, the adoption of digital coins in the country is growing rapidly.
From fuel payments to car sales
One of the first examples of crypto adoption took place in March. Then state oil company Yacimientos Petrolíferos fiscales Bolivianos received permission to accept crypto prices for fuel imports. This had to reduce the dependence on the US dollar.
With the accession of international car manufacturers to the cryptomarkt, the use of Stablecoins is now also expanding to the car market. This gives Crypto an increasingly important role in daily economic traffic in Bolivia.
Decrease in foreign exchange reserves
The economic situation in Bolivia is rapidly deteriorating. The foreign exchange reserves have fallen by 98 percent since 2014, from $ 12.7 billion to only $ 171 million in August 2024. Although the Bolivian Boliviano remains the national currency, the fear of loss of purchasing power is growing. More and more inhabitants are therefore opting for the US Dollar or Stablecoins.
Bolivia’s largest bank recently called Crypto a feasible alternative to fiat money. At the end of July, the bank, together with El Salvador, signed an agreement to speed up the acceptance of digital currency.
Stablecoins support trade and consumption
Not only consumers, but also companies use USDT. Importers buy Stablecoins locally or via foreign accounts, change these in dollars and pay suppliers with it. According to Gabriel Campa, head of digital assets at Towerbank, this ensures a circular economy in which Stablecoins play a key role.
Stores at airports have also switched to mentioning prices in USDT. In this way crypto is becoming increasingly visible in the daily life of Bolivians.
Political influence of crypto
The rise of digital currency also plays a role in the upcoming elections. On October 19 a second round will follow between Rodrigo Paz Pereira of the Christian Democratic Party and Jorge “Tuto” quiroga of freedom and democracy alliance.
Paz Pereira wants to use blockchain for more transparency and to combat corruption. Quiroga has spoken less about the role of crypto currency. The outcome of the elections will determine how Bolivia will deal with digital coins in the coming years, after almost twenty years under the leadership of the movement for socialism.
Source: https://newsbit.nl/autofabrikanten-accepteren-tether-in-bolivia-tijdens-valutacrisis/
