Bolivian state-owned energy company YPFB plans to use cryptocurrency to pay for energy imports, according to Report to Reuters on March 13. The move is due to the lack of foreign currency reserves and insufficient supply of domestic natural gas production.
A YPFB spokesman said that after the government approved the use of digital assets to meet the country’s needs, a system has been established to purchase energy imports using cryptocurrencies. Although YPFB has not used the system yet, it plans to do so.
The report does not reveal the cryptocurrency to be used for payments. Stable digital assets are pegged to fiat currencies and are often used for cross-border transactions, although it is not clear whether this will happen in Bolivia.
https://www.youtube.com/watch?v=fdpmjhtq5am
fuel shortage In Bolivia, some workers, including farmers, have raised threats of protests and strikes, saying that lack of fuel will threaten their summer harvest. Only 35%–50% of the country’s public transport system operates. Energy and Hydrocarbon Minister Alejandro Gallardo said there was challenges due to foreign currency shortages.
A spokesman for the YPFB noted that the new procurement system is designed to support the country’s national fuel subsidies in the event of foreign currency shortages. “From now on, these (cryptocurrency) transactions will be made,” they said.
Related: Vibe Killer: This is the country that has been transferred to Outlaw Crypto in the past year
Bolivia adopts cryptocurrency to increase
June 2024, the Central Bank of Bolivia, the Central Bank of Bolivia The ban was lifted On Bitcoin (BTC) and crypto payments that allow financial institutions to trade with digital assets. The ban has been in place Since 2014.
September 2024, Bolivia Virtual asset transactions reportedly grew 100%trading assets worth approximately $15.6 million each month between July and September. The $48.6 million deal consists primarily of Stablecoins. Stable Often used in developing countries Its local currency has experienced high depreciation or shortage of foreign currencies.
Related: Stablecoins will see explosive growth in 2025 as the world embraces asset classes
Stablecoin’s use gains further momentum in Bolivia in October 2024 Banco Bisa introduces Stablecoin custody services. The service is supported by the country’s financial regulators, allowing residents of the country to purchase, sell and trade Tether’s USDT (USDT), a stable protein fixed for one dollar.
Cointelegraph wrote in September 2016 There are many benefits by adopting cryptocurrencies. At that time, most citizens in the country had no silver medals, only 11% of residents used debit cards to pay, and only 5% used credit cards. However, the country continues to stick to its ban until 2024, May 2017 call Crypto the Pyramid Plan And arrest cryptocurrency advocates.
Magazine: Bitcoin payments are damaged by centralized stability
