Tether has become a new form of payment in Toyota, Yamaha and BYD. These companies reach for stablecoin to deal with the deficiency of the American dollar in this country.
Tether with a new payment form
Three international car manufacturers began to accept Tether in Bolivia. Reason? Deal with the decreasing reserves of the American dollar. Everything was confirmed by the president of Tether, Paolo Ardoino, who announced on Sunday that Toyota, Yamaha and BY USD as a form of payment. Bitgo, in turn, confirmed on Saturday that the first Toyota model was already purchased in Bolivia using USDT.
Bolivia was one of the last Latin American countries that blocked the adoption of cryptocurrencies. Everything changed in June 2024, when the government abolished the long -term ban on the use of cryptocurrencies and allowed banks to process cryptotransation. In March, the State Naftowo-Gazowa YACIMIMENTOS PETROLíferos Fiscales Bolivianos received government consent to start accepting cryptocurrencies when paying for fuel imports. And in this case it was about solving the problem of the American dollar deficiency.
Foreign currency reserves melt
Everything fits into a broader context: Bolivia currency reserves fell by as much as 98%, from USD 12.7 billion in July 2014 to USD 171 million in August this year. Bolivian Boliviano remains the most commonly used currency in Bolivia, but the fears of her loss of purchasing power prompted many residents to reach for alternatives, such as an American dollar, and in some cases of cryptocurrency. The most important Bolivian bank even called the digital currencies a “real and reliable alternative” for fiducinating currencies, signing a memorandum with a salvador at the end of July on the acceleration of cryptocurrency adoption.
As if that was not enough, Bolivian companies importing products also use USDT. They buy stablecoin locally or through foreign bank accounts, exchange them with American dollars and pay foreign suppliers.
On October 19, elections will take place in Bolivia. The Christian Democratic Party of Rodrig Paza Pereira and the Coalition of Freedom and Democracy Jorge “Tuto” Quirogi are fighting for power. The first proposes to implement blockchain technology in the public sector.
The winning party will take power in Bolivia after almost two decades of the rule of the Movement for Socialism, which largely borne for the current economic crisis in the country.
