Bolivia Labels Crypto a Viable Alternative to Fiat in El Salvador Deal

On July 30, the Central Bank of Bolivia signed a landmark agreement with El Salvador’s National Commission of Digital Assets to recognize crypto as a viable and trustworthy alternative to traditional fiat currency.

The agreement lays the groundwork for joint development of crypto-friendly policies, technology collaboration, and modernization of financial systems. The move is Bolivia’s clearest embrace of crypto to date and follows the country’s decision to lift a long-standing ban just over a year ago.

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Bolivia’s Crypto Trading Volume Hits $294 million in June. Could it Climb Further?

Since legalizing digital assets in June 2024, Bolivia has seen a rapid rise in crypto usage. By June 30, 2025, trading volume reached $294 million.

For comparison, just three months after the ban was lifted, local trading volumes stood at $46.8 million (averaging $15.6 million per month), double the monthly average from the previous 18 months when crypto was restricted.

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But the rising demand isn’t just about policy. It’s happening against a backdrop of severe economic stress.

Bolivia’s foreign reserves have dropped from $12.7 billion in 2014 to only $165 million by April 2025. The official exchange rate now nears seven Bolivianos to the U.S dollar, while the black market rate is as high as ten.

This growing gap reflects a weakened currency as foreign currency (USD) demand outpaces available supply.

This worsening dollar shortage has forced businesses and households to seek alternatives. Fuel imports cost the country about $56 million every week, yet shortages persist.

Meanwhile, inflation continues to rise. As of March 2025, consumer prices were up 14.6% year-over-year.

As confidence in the national currency fades, crypto is stepping in as an alternative. It’s gradually becoming commonplace to find local stores ready to exchange goods for Tether’s USDT, a stablecoin tied to the U.S. dollar. The government sees this shift as an opportunity.

Through the new agreement, Bolivia hopes to replicate elements of El Salvador’s approach and gain insight into how digital assets can be integrated into a struggling economy. The memorandum outlines goals like technology exchange, cross-border cooperation, and policy development.

More Countries and Corporations Accelerate Bold Shift to Crypto

Bolivia is not alone.

Around the world, governments and corporations are turning to crypto as protection against inflation, unstable currencies, and monetary policy failure.

Last week, Japanese AI company Quantum Solutions said it plans to purchase up to 3,000 Bitcoins over the next year, starting with a $10 million investment.

The company says it no longer trusts the yen to hold value long term.

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In the U.S., GameStop recently converted $513 million into Bitcoin. Chairman Ryan Cohen explained that the move was meant to protect company assets against inflation and position the company for long-term value.

Paolo Ardoino, CEO of Tether, has voiced support for this kind of strategic shift, emphasizing the role of crypto in preserving wealth.

In Europe, the Blockchain Group raised €63.3 million (about $72 million) through bond sales and is using nearly all of it to buy 590 Bitcoin (around €60 million). It’s one of the largest digital asset investments by a tech company in the region this year