USDT Surges in Bolivia Amid Economic Collapse

- Tether CEO Paolo Ardoino highlighted the unofficial use of USDT in Bolivian shops. - Economic decline drives Bolivians to adopt USDT for daily transactions. On June 9, 2025, Tether CEO Paolo Ardoino showcased images on social media illustrating the increasing use of the stablecoin USDT in everyday transactions in Bolivia. These images depicted goods such as sunglasses and sweets in Bolivian shops, including an airport duty-free store, labeled in USDT. This adoption is driven by Bolivia's sharp currency depreciation, rising inflation, and economic instability. Reports indicate Bolivian businesses, including local stores and an airport duty-free shop named Duty Fly, have started pricing goods in USDT. These items range from chocolates to sunglasses, reflecting a significant shift toward using digital dollars amid economic turmoil. On June 8, Blockmedia reported that these stores adopted "USDT price tags" because the Boliviano rapidly depreciated and inflation heightened. According to Blockmedia, while these price tags suggest a preference for digital currency transactions, people can still make payments in Bolivianos or US dollars, with stores pegging prices against USDT rates provided by the Central Bank of Bolivia and Binance. On June 9, Bitcoin.com News described this phenomenon as "bottom-up adoption," explaining that in this model, people extensively use USDT as a unit of account in response to several challenges in Bolivia, including a lack of access to US dollars, fuel shortages, and substantial inflation. Meanwhile, an updated article on June 9 from Cointelegraph mentioned that Bolivia's foreign reserves have plummeted, exacerbating reliance on a black market for US dollars. Cointelegraph also noted that while the official exchange rate neared 7 Bolivianos per $1, black market rates were closer to 10 Bolivianos per $1 in mid-2024. Furthermore, the Consumer Price Index (CPI) in Bolivia indicated an inflation rate of 14.6% as of March 2025. In a June 8 report, AInvest noted that this grassroots adoption of USDT in Bolivia mirrors a broader trend across Latin American countries, where nations increasingly turn to stablecoins for day-to-day commerce in response to economic instability. AInvest suggested this trend may extend to other developing regions, although establishing regulatory frameworks would be necessary for such an extension. Additionally, on June 7, CoinGape mentioned that this development could indicate a more widespread acceptance of stablecoins in retail markets, aligning with Tether's stated focus on emerging markets where various factors constrain access to the U.S. dollar. As of 11:08 UTC on June 9, market data showed Tether USDt (USDT) trading at $1.001, with its 24-hour trading volume having changed by 0.01%.