Bolivian President-elect Rodrigo Paz aims to combat corruption within his government by leveraging blockchain technology.
The Associated Press reported on Monday that Paz emerged victorious over rival Jorge Quiroga with 54.5% to 45.5%, and he will assume office on November 8. Winning the runoff election with a centrist, pro-market approach, Paz inherits a struggling economy impacted by fuel shortages and a tight supply of US dollars, according to the AP.
For those observing the cryptocurrency landscape, Paz’s governmental agenda includes two specific proposals concerning digital assets and blockchain.
Blockchain as part of Bolivia’s reform strategy
The first proposal seeks to utilize blockchain and smart contracts in public procurement processes. The official 2025 government platform of the Partido Demócrata Cristiano commits to leveraging blockchain technology and employing smart contracts to eliminate subjectivity in state purchasing. This initiative aims to reduce corruption in government procurement by automating certain contract procedures.
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The second proposal involves establishing a framework for citizens to register crypto assets into a new foreign-exchange stabilization fund, initiated through an asset-regularization effort that explicitly accommodates cryptocurrencies. Such stabilization funds are reserves aimed at stabilizing currency values and funding essential imports during periods of US dollar scarcity, according to the US Treasury Department. By including cryptocurrencies, the government expands its capacity to tax or rapidly convert assets to hard currency without retaining volatile tokens.
Paz appears to be pragmatic regarding cryptocurrencies, though he is not an advocate for Bitcoin (BTC) specifically. His platform positions blockchain as a tool for combating corruption and views declared crypto assets as part of a one-off effort to capitalize a currency stabilization fund. There is currently no indication of a policy to nationalize BTC, maintain it in reserves, or legalize it for retail use.
Bolivia adopts digital currency transactions
Cointelegraph has observed Bolivia’s shift towards cryptocurrency policy since 2024. The central bank, Banco Central de Bolivia, lifted its operational ban on crypto transactions in June 2024, endorsing regulated electronic channels and indicating a modernization of payment systems. Subsequently, average monthly trading volumes of digital assets doubled compared to the previous 18-month period, according to the bank.
This trend has carried over into the real economy. In October 2024, Banco Bisa became the first Bolivian bank to offer USDt (USDT) custody services for institutions. In March, it was reported that state oil company YPFB was investigating the use of crypto for energy imports amid US dollar scarcity. By September, distributors of major automotive brands, such as Toyota, Yamaha, and BYD, began accepting USDT, showcasing increasing experimentation among merchants.
On July 31, the central bank signed a memorandum with El Salvador, characterizing crypto as a “viable and reliable alternative” to fiat and promising collaboration on policies and intelligence tools aimed at modernizing payment systems and enhancing financial inclusion. By June 30, monthly trading volumes for cryptocurrencies had reached $46.8 million and a total of $294 million year-to-date.
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