Three major international carmakers have begun accepting Tether (USDT) in Bolivia, as the country struggles with shrinking U.S. dollar reserves. This marks an important step in Bolivia’s move toward cryptocurrency adoption.
Tether CEO Paolo Ardoino announced on Sunday that Toyota, Yamaha, and BYD are now taking USDT as payment. Crypto security firm BitGo also confirmed that the first Toyota purchase in Bolivia using USDT took place on Saturday.
Photos shared by Ardoino show a dealership displaying signs that promote USDT as an “easy, fast, and safe” way to buy cars. BitGo added that it is working with Tether and Bolivia Toyota to provide self-custody solutions and ensure smooth transactions.
Bolivia Turns to Crypto Amid Dollar Shortages
One of the first major signs of crypto adoption came in March, when Bolivia’s state-owned oil and gas company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), won government approval to accept cryptocurrency for fuel imports. The move was seen as a response to the country’s worsening shortage of U.S. dollars.
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According to Trading Economics data, Bolivia’s foreign exchange reserves have collapsed by 98%, dropping from $12.7 billion in July 2014 to just $171 million by August this year. While the Bolivian boliviano is still the main currency, concerns about its weakening value have led many citizens to turn to more stable options such as the U.S. dollar or, increasingly, cryptocurrency.
In late July, Bolivia’s largest bank even described crypto as a “viable and reliable alternative” to traditional currencies, signing a memorandum of cooperation with El Salvador to speed up adoption.
At the same time, airport shops in Bolivia have begun listing everyday items in USDT, using the stablecoin to cope with the ongoing currency crisis.
