Cryptocurrency usage is rapidly increasing in the South American country of Bolivia. With extreme inflation and cash shortages intertwining, digital assets like Bitcoin (BTC) and Tether (USDT) are gaining attention as alternative payment methods.
According to Cointelegraph, recently, shops and small businesses in major Bolivian cities are successively adopting cryptocurrency payments to prepare for the local currency's value decline. Some merchants evaluate that "Bitcoin and Tether are safer for cross-border payments and value storage".
While the Bolivian Central Bank officially prohibits payments outside legal tender, cryptocurrency usage is rapidly spreading at the private sector level. Cases of cryptocurrency QR payment adoption are increasing, from street vendors to online retailers.
Particularly, Tether, a stablecoin pegged 1:1 to the US dollar, is gaining popularity as a means to avoid exchange rate instability. Local business owners are actively using it for payment settlements, stating that "paying with Tether can protect asset value".
An industry insider noted that "the Bolivian case demonstrates the process of cryptocurrency establishing itself as a practical payment and storage method during economic crises" and predicted that "this trend is likely to spread to other South American countries in the future".
