Bolivia considers permitting USDT use amid dollar shortage Bolivia is considering a legal framework that would allow USDT to be used as a parallel currency alongside the boliviano and the U.S. dollar, aiming to alleviate pressure from a prolonged dollar shortage. If approved, USDT could be used for payments, savings, and daily commerce. This move is part of a broader effort by President Rodrigo Paz Pereira’s administration to integrate digital assets into the formal financial system, following Bolivia’s lifting of its crypto ban in 2024. The government stated that strict regulatory oversight will be necessary, as the country remains on the International Financial Action Task Force’s monitoring list. The dollar shortage emerged after Bolivia abandoned its fixed exchange rate peg, which had been in place since 2011, leading to the rapid growth of an informal foreign exchange market with significantly higher dollar rates than the official rate. According to Chainalysis, Bolivia recorded a total cryptocurrency trading volume of $14.8 billion over the past 12 months.