Mobile Payment Network News: Recently, the Bolivian government announced a major policy—integrating stablecoins into its formal financial system, allowing them to be used "as a legal-tender payment instrument."
This policy shift was not achieved overnight, but rather represents a strategic modernization reform of the financial system undertaken by the country under the dual drive of economic difficulties and market demand. Bolivia's move is not only a response to monetary and financial realities, but also represents a proactive upgrade of its financial infrastructure, payment system, and financial inclusion.
Granting Payment Instrument Status: Allowing stablecoins to be used "as a legal-tender payment instrument".
In conjunction with fiscal reforms: This policy was announced in conjunction with multilateral financing negotiations totaling over $90 billion, the elimination of wealth and financial transaction taxes, and fiscal measures such as cuts to public spending. Background and Motivation: Crisis-Driven Financial Self-Rescue Bolivia's move is a direct response to its severe domestic economic reality. The main motivations include: Currency Depreciation and Inflation: In recent years, Bolivia has faced pressure from currency depreciation and inflation, prompting its citizens and businesses to seek ways to preserve asset value. Stablecoins, due to their peg to the US dollar and relatively stable value, are widely regarded as "digital dollar alternatives" used to hedge against currency fluctuations. Severe Foreign Exchange Shortage: The country faces pressure from tight dollar reserves and restricted foreign exchange circulation. Stablecoins provide businesses and individuals with a relatively free and transparent "dollar alternative," reducing reliance on the traditional foreign exchange market. Explosive Growth in Private Demand: Since the lifting of the cryptocurrency ban in June 2024, Bolivia's cryptocurrency trading has experienced explosive growth. In the first half of 2025, the value of cryptocurrency transactions through formal channels reached approximately $294 million, an increase of over 500% compared to approximately $46.5 million in the same period of 2024. This demonstrates strong intrinsic market demand. Improving Financial Inclusion: By incorporating stablecoin services into the regulated banking system, it is hoped that financial services can reach more people neglected by the traditional banking system and drive financial technology innovation.
Advantages, Challenges, and Future Directions of Stablecoins
Stablecoins will provide