The newly elected President of Bolivia, Rodrigo Paz, aims to address government corruption using blockchain technology.
The Associated Press reported on Monday that Paz successfully defeated his opponent Jorge Quiroga with 54.5% to 45.5%, and is scheduled to take office on November 8. Paz’s victory on Sunday was built upon a centrist, pro-market platform, while he inherits an economy challenged by fuel shortages and pressures on the US dollar, according to the AP.
For those observing the crypto landscape, Paz’s government plan includes two specific initiatives related to digital assets and blockchain technology.
Blockchain is part of Bolivia’s reform strategy
The first initiative proposes utilizing blockchain and smart contracts in public procurement processes. The official 2025 government platform of the Partido Demócrata Cristiano commits to implementing blockchain technologies and smart contracts to eliminate discretion in state procurement. This plan is aimed at combatting corruption in public purchasing by automating some contracting processes.
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The initiative will allow citizens to declare their crypto assets into a newly established foreign-exchange stabilization fund, which will be initiated through an asset-regularization campaign that includes crypto. Such funds are reserve pools intended to stabilize the currency and facilitate essential imports when US dollars are not available, according to the US Treasury Department. Incorporating crypto expands the government’s ability to tax or quickly convert assets to hard currency without depending on fluctuating tokens.
While Paz appears to be pragmatic towards crypto, he does not position himself as a Bitcoin (BTC) maximalist. His platform presents blockchain as a mechanism against corruption and considers declared crypto assets as part of a one-time asset regularization initiative to fund currency stabilization. So far, there is no indication of a policy to embrace BTC at the national level, hold it in reserves, or authorize retail legalization.
Bolivia adopts digital currency payments
Cointelegraph has been monitoring Bolivia’s shift in crypto policy since 2024. The nation’s central bank, Banco Central de Bolivia, lifted its operational ban on crypto transactions in June 2024, allowing for regulated electronic channels and indicating a movement toward modernizing payment systems. Subsequently, average monthly trading of digital assets doubled compared to the previous 18-month average, according to the bank.
This change has also permeated the real economy. In October 2024, Banco Bisa became the first Bolivian bank to offer USDt (USDT) custody for institutions. In March, it was reported that state oil company YPFB was considering crypto for energy imports due to US dollar scarcity. By September, several major automotive brands, including Toyota, Yamaha, and BYD, had begun accepting USDT locally, highlighting increased merchant-side engagement with crypto.
On July 31, the central bank also signed a memorandum with El Salvador, referring to crypto as a “viable and reliable alternative” to fiat and promising cooperation on policies and intelligence tools aimed at modernizing payments and enhancing financial inclusion. Monthly crypto trading volumes reportedly reached $46.8 million as of June 30, with a total of $294 million year-to-date.
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