Bolivia’s New President Taps Blockchain to Fight Corruption

Bolivia’s incoming president, Rodrigo Paz, aims to use blockchain technology to tackle government corruption and modernize public finances.

Paz, who won the runoff election with 54.5% of the vote against Jorge Quiroga, will take office on November 8, inheriting an economy strained by fuel shortages and a tight US dollar supply.

Two key initiatives highlight his approach to digital assets. First, Paz plans to implement blockchain and smart contracts in public procurement to reduce discretionary decision-making, automating portions of state purchasing and making processes more transparent. Second, his administration will allow citizens to declare cryptocurrency holdings as part of a new foreign-exchange stabilization fund, designed to broaden reserve assets and strengthen the national currency.

While Paz sees blockchain as a tool for transparency, he is not pushing for national adoption of Bitcoin or other cryptocurrencies for reserves or retail use.

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The focus is pragmatic: use digital assets for anti-corruption measures and one-time asset regularization to support currency stability.

Bolivia has been gradually opening up to crypto since 2024. The central bank lifted restrictions on digital transactions last year, enabling regulated crypto payments and doubling average monthly trading volumes. Institutional custody of USDT has begun, and major merchants- including Toyota, Yamaha, and BYD – are accepting stablecoins. The central bank also signed a cooperation memorandum with El Salvador to explore crypto as a viable alternative to fiat, reflecting a broader trend toward modernization and financial inclusion.