Bottom-up Adoption: USDT Surges as Unit of Account in Bolivia
Sergio Goschenko
Emerging Markets
Bottom-up Adoption: USDT Surges as Unit of Account in Bolivia
Paolo Ardoino, CEO of Tether, posted several pictures of items priced in USDT in Bolivia, marking an adoption milestone for the dollar-pegged stablecoin. The measure comes amid a climate of unrest due to the scarcity of dollars and gas faced by Bolivians.
USDT Used to Establish Prices in Bolivia
Stablecoins are becoming increasingly popular in Latin America, especially in nations that face dollar shortages and currency controls. Bolivia, a country experiencing unrest and riots due to the scarcity of gas and dollars, is witnessing an adoption phenomenon that pioneers the use of USDT as a unit of account.
Paolo Ardoino, CEO of Tether, issuer of USDT, revealed images showing some items already priced using the stablecoin in Bolivia, a milestone for the $150+ billion market cap project.
In social media, Ardoino stated:
In Bolivia, real prices in shops are displayed in USDT. A quietly revolutionary shift: digital dollars are powering daily life, commerce, and economic stability.
The retailer explained that, while prices were established in USDT, users could pay in fiat or U.S. dollars, taking the reference exchange rate from the central bank, which also borrows data from Binance’s P2P markets.
This development comes as the government has implemented several hostile measures against stablecoins, banning their planned use as a dollar proxy to purchase gas from international suppliers.
Nonetheless, since the ban on using the financial system for purchasing crypto was lifted last year, Bolivia has become a cryptocurrency hotbed, with exchange volumes breaking records.
Tether has repeatedly stated that its focus is on emerging markets, where citizens lack access to the U.S. dollar, and the company can provide services for increasing financial inclusion.
Recently, the company led an investment round in Orionx, a financial services company that provides stablecoin-based services, to increase its foothold in Latam and extend its service offering. This week, Tether also closed another strategic investment in Shiga, a pan-African blockchain-based financial solutions provider, reinforcing its commitment to reaching emerging markets with dollar-starved economies.
Read more: Bolivia Bans State Oil Company From Using Crypto for Energy Settlements
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