Bolivia’s Crypto Use Jumps 530% Amid Soaring Inflation

• Bolivia processed $294M in crypto in H1 2025, up 530% from $46.5M a year earlier.
• Monthly crypto transactions peaked at $68M in May amid dollar and fuel shortages.
• 86% of Bolivia’s 10,000 crypto operations were by individuals, mostly through Binance.

According to the Central Bank of Bolivia, crypto transactions have drastically increased due to inflation and dollar scarcity. Statistics published on June 27 showed that the amount of digital asset transfers via regulated payment channels increased from $46.5 million in the first six months of 2024 to $294 million in the same period of 2025, an increase of more than 530%.

The report outlined that monthly transaction volume hit a record $68 million in May. The rise comes as Bolivia faces a deepening economic crisis. Dollar reserves have depleted to near-zero levels, inflation has reached a four-decade high, and the boliviano continues to depreciate rapidly on the black market. As a result, citizens are turning to platforms like Binance and stablecoins such as Tether (USDT) to preserve value and conduct daily transactions.

According to the Banco Central de Bolivia (BCB), domestic virtual asset operations totaled $430 million since June 2024. These comprised more than 10,000 transactions through payment channels that were authorized by the financial regulator ASFI. The figures indicated that individuals initiated 86% of the transactions, and 77% of the users were identified as male. Binance-related payment rails are said to have processed the highest proportion of transfers.

Policy Shift and Regulatory Framework to Guide Usage

According to the central bank, the rise in activity is due to Resolution 082/2024, which was passed last June. This policy accepted the legitimacy of virtual assets and permitted financial institutions to direct customer transactions to digital exchanges. This opened the door for more structured crypto activity in Bolivia after years of prohibition.

In March 2025, the government expanded the policy to cover public sector institutions. The national oil company, YPFB, began using digital assets for fuel imports in response to fuel supply issues and a lack of foreign reserves. The BCB confirmed that more agencies could follow if supply chain disruptions persist.

Officials are now preparing for long-term oversight. President Luis Arce’s administration introduced Supreme Decree 5384 in May. The law creates licenses for fintech firms and virtual asset service providers. It requires anti-money laundering protocols in accordance with the standard provided by the Financial Action Task Force of Latin America (GAFILAT). ASFI has been given a 40-day deadline to develop the implementation rules.

Related: S&P 500 Hits Record High as Crypto Stocks Lead The Rally

Education Campaigns and Compliance Mechanisms Introduced

In parallel with the legal changes, Bolivia launched a national crypto education campaign. The central bank scheduled workshops across all nine departments to teach residents about private key security, domain phishing risks, and market volatility. Demonstrations also expose citizens to scams targeting local WhatsApp groups.

Banks are now required to file daily crypto activity reports and monitor transactions against U.S. sanctions lists. Authorities flagged 27 accounts for enhanced review but did not issue penalties. Furthermore, custodial crypto wallets remain excluded from the national deposit insurance scheme, prompting warnings about self-custody.

The BCB also aims to publish quarterly reports of exchange activity in coordination with the national tax authority. These will assist in integrating crypto transaction data into the current value-added tax framework and enhance transparency in Bolivia’s growing virtual asset industry.

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