Bolivia’s president-elect, Rodrigo Paz, is aiming to tackle government corruption and stabilize the national economy by integrating blockchain technology and cryptocurrencies into the heart of state operations. This plan represents a significant shift in policy for the South American nation, which only lifted a ban on cryptocurrency transactions in June 2024.
A Two-Pronged Approach to Reform
President-elect Paz’s strategy focuses on two key areas where blockchain technology can introduce greater transparency and financial stability.
First, his administration plans to use blockchain and smart contracts in public procurement. The goal is to create a system where tender awards, payment dates, and delivery proofs are recorded on a tamper-proof ledger. By automating contract processes with self-executing code, the government aims to remove human discretion from state purchasing, which is a common source of corruption.
Second, the plan involves a one-off window for citizens to declare their crypto assets. These declared digital assets would then be channeled into a new foreign-exchange stabilization fund. This fund is designed to help steady the national currency, the boliviano, and pay for essential imports at a time when US dollars are scarce. This approach treats crypto not as a speculative asset but as a pragmatic tool for national reserve management.
Building on a Growing Crypto Trend
This ambitious government plan is not happening in a vacuum. Bolivia has been experiencing a crypto boom, making Paz’s proposals a potential formalization of a trend already underway.
The central bank reported that cryptocurrency transactions skyrocketed to $294 million in the first half of 2025, a staggering 630% increase from the same period in 2024. This surge was fueled by a severe shortage of US dollars, which pushed businesses and citizens to seek alternatives.
Major auto distributors in Bolivia for brands like Toyota, Yamaha, and BYD have already begun accepting the stablecoin USDT for vehicle purchases. Furthermore, the state-owned oil company YPFB has been exploring the use of cryptocurrencies for energy imports, signaling a broader acceptance of digital assets at an institutional level.
Challenges on the Road Ahead
While the potential benefits are significant, President-elect Paz’s blockchain agenda faces considerable challenges.
The most immediate hurdle is the precarious state of Bolivia’s economy. The country is grappling with inflation at decades-high levels, a large fiscal deficit, and foreign exchange reserves that are barely sufficient to cover two months of imports. Successfully implementing a complex technological overhaul amidst this economic disarray will be a major test.
Furthermore, the plan’s success will depend on widespread public participation and robust technical execution. The government will need to convince a sufficient number of citizens to declare their crypto holdings for the stabilization fund to have a meaningful impact. It will also need to ensure that the digital infrastructure for the new procurement system is secure and reliable to maintain public trust.
