Bolivia is turning to cryptocurrency as a potential solution to its ongoing fuel crisis and declining foreign reserves.
With a shortage of US dollars making it harder to import fuel, the country’s state-owned energy company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has been authorized to use digital currencies for payments. Although no transactions have been made yet, the move signals the government’s willingness to embrace alternative payment methods to maintain fuel imports and alleviate public discontent.
This decision comes as Bolivia faces severe economic challenges, including reduced natural gas exports and dwindling dollar reserves. Fuel shortages, which have led to long lines at gas stations, have sparked protests and public unrest. The government’s fuel subsidy program is under pressure, and turning to crypto could provide a way to bypass traditional payment channels.
The shift towards cryptocurrency aligns with a broader trend in South America, where nations like Venezuela and Argentina have already adopted digital currencies to circumvent financial restrictions and facilitate international trade. Bolivia’s strategy aims to stabilize its energy supply by offering a new mechanism for cross-border payments.
Despite this, the country’s central bank had previously banned cryptocurrencies, citing economic difficulties and regional regulatory concerns. However, as more countries recognize the potential of digital assets, Bolivia is beginning to consider them as a viable alternative to traditional currency. The effectiveness of this strategy remains uncertain, as crypto transactions come with volatility and legal challenges, but the government hopes it can provide a temporary solution to keep fuel flowing into the country.
California is pushing forward a legislative plan that could redefine how the state handles inactive crypto holdings.
Circle, the company behind the USDC stablecoin, has raised more than $1.1 billion in a highly anticipated IPO, outperforming its earlier fundraising targets.
Steve Eisman, the famed investor known for forecasting the 2008 housing collapse, is sounding the alarm—not on overvalued tech stocks or interest rates, but on the escalating risk of global trade disputes.
Kevin Hassett, head of the National Economic Council in Trump’s second term, has revealed a multi-million-dollar investment in crypto exchange Coinbase—prompting concerns over potential conflicts of interest in Washington.