A wave of small businesses in Bolivia is embracing cryptocurrencies as the country’s financial crisis deepens, marking a dramatic shift in how locals seek to protect their livelihoods and savings. According to a new report by Reuters, restaurants, beauty salons, and other small enterprises are turning to crypto payments as trust in the Bolivian boliviano evaporates and economic instability intensifies.
The trend underscores how hyperinflation and dwindling foreign reserves are forcing ordinary Bolivians to explore alternative financial tools once seen as risky or niche. “We’ve lost faith in our currency,” one small business owner told Reuters. “Crypto is now the only way to stay afloat.”
Explosive Growth in Crypto Transactions
Data from Bolivia’s central bank paints a clear picture of crypto’s rapid rise. In the first half of 2025, crypto transactions surged 530% compared to the same period in 2024, leaping from $46.5 million to $294 million. This spike comes as Bolivia’s currency has lost more than half its value on the black market and the central bank has exhausted its U.S. dollar reserves, leaving citizens scrambling for a reliable store of value.
The country’s financial woes have triggered widespread fuel shortages and inflation levels unseen in recent history. Against this backdrop, cryptocurrencies like Bitcoin (BTC) and stablecoins such as Tether (USDT) are increasingly viewed as safe havens for Bolivians desperate to preserve their purchasing power.
According to Jose Gabriel Espinoza, former head of Bolivia’s central bank, daily USDT volumes may now exceed $600,000. Though this figure is still dwarfed by the estimated $12 million to $14 million circulating in Bolivia’s cash-based black market each day, crypto’s share of the economy is growing at a startling pace.
Why Crypto Looks Stable in Bolivia’s Economic Storm
For Bolivians, crypto’s appeal lies in its relative stability compared to a national currency in free fall. “We have no dollars, our boliviano is worthless, but Bitcoin and Tether hold their value,” said one salon owner who began accepting crypto payments earlier this year. The sentiment echoes fears that Bolivia’s financial system could collapse further, making crypto not just an option but a necessity.
The financial crisis has become so acute that even ordinary consumers, not just tech-savvy investors, are using digital wallets to pay for haircuts, meals, and groceries. The sharp increase in day-to-day crypto use highlights how quickly traditional cash transactions can be replaced when fiat currencies fail.
A Regional Trend of Inflation-Driven Crypto Adoption
Bolivia’s crypto pivot follows a pattern seen in other countries grappling with runaway inflation. In Turkey and Lebanon, economic meltdowns spurred waves of Bitcoin adoption in 2023 as citizens fled rapidly devaluing currencies. The trend has also swept across Latin America, with Argentina providing a dramatic case study.
Facing an inflation rate that topped 100% in 2023, Argentinians turned to cryptocurrencies en masse, transacting over $85.4 billion in digital assets that year more than any other country in the region. Analysts say such adoption shows how quickly populations can pivot to crypto when traditional monetary systems fail them.
Crypto as an Economic Lifeline
Experts warn that Bolivia’s embrace of crypto is a double-edged sword. On one hand, it provides a lifeline for small business owners and families hoping to escape financial ruin. On the other, it highlights a profound lack of faith in state institutions and raises concerns about how governments can maintain economic sovereignty when citizens migrate to decentralised assets.
Yet for many Bolivians, the choice is clear: crypto offers a semblance of stability in an economy rocked by fuel shortages, spiralling inflation, and a currency collapse that has left banknotes almost worthless.
A Telling Shift in Consumer Behaviour
This explosive growth in crypto use in Bolivia signals more than just a passing trend; it marks a shift in how citizens interact with money itself. As small businesses lead the charge in accepting Bitcoin and USDT, Bolivia joins a growing list of countries where economic chaos has made cryptocurrency a mainstream necessity, not just a speculative investment.
With no signs of inflation easing, experts predict crypto’s role in Bolivia’s economy will only expand in the months ahead, as more businesses and consumers seek refuge in digital assets that promise to hold their value when everything else crumbles.
