• Bolivia reports over 530% increase in crypto transactions, highlighting rising economic instability.
• Local businesses are accepting cryptocurrencies like Bitcoin and Tether amid dollar shortages.
• Experts warn that crypto adoption reflects a lack of stability, not a secure financial solution.

In Bolivia, an unprecedented economic crisis is prompting a growing number of residents to adopt cryptocurrencies as alternatives to the rapidly depreciating boliviano. As inflation soars to 40-year highs and dollar reserves dwindle to near zero, cryptocurrency platforms like Binance and stablecoins such as Tether are becoming increasingly attractive to business owners and consumers alike. Reports indicate that transactions involving digital assets have surged from $46.5 million in the first half of 2024 to an astonishing $294 million in the same period of 2025, marking a rise of over 530%, according to reports from Channel News Asia and Reuters.

In Cochabamba, a vibrant shopping area has begun to see ATMs allowing customers to trade coins for cryptocurrencies, while local businesses such as beauty salons and restaurants incentivize payments made in Bitcoin. One business owner expressed confidence that utilizing cryptocurrencies is "the most innovative and promising thing a city like Cochabamba can do," underscoring the urgency felt by Bolivians to find currency alternatives amidst the crisis, according to Reuters and Channel News Asia.

Despite the rapid growth in usage, experts warn that the dependency on cryptocurrencies may not indicate financial security. Former head of Bolivia's central bank, Jose Gabriel Espinoza, has stated that the uptick in crypto usage represents a stark reflection of the dilapidated purchasing power rather than an improvement in financial stability, emphasizing the inherent volatility of cryptocurrencies. "This isn't a sign of stability," he noted, highlighting the fragility of households' finances in the current climate, as reported by The Jakarta Post and Reuters.

Increasingly, Bolivians are using crypto transactions not just for convenience but as a safeguard for their diminishing wealth. With estimates suggesting nearly $68 million in crypto transactions occurred in the month of May alone, the trend appears stable. However, the Bolivian government is also working on a regulatory framework for cryptocurrencies to align with international standards, indicating a cautious approach towards the rapidly evolving financial technology landscape in the country, as noted by Channel News Asia and Reuters.