Bolivia Adopts Crypto Custody as Inflation Hits 22%

- Bolivian banks authorized to offer cryptocurrency custody services. - Inflation across nations fuels growing adoption of stablecoins and cryptocurrencies. Amid severe economic instability, Bolivia has taken a groundbreaking step to incorporate cryptocurrency into its financial system. On November 25, 2025, Cointelegraph reported that Economic Minister José Gabriel Espinoza announced new regulations allowing banks to offer cryptocurrency custody services. This new framework permits the use of digital assets for savings accounts, loans, and credit products. The move directly responds to Bolivia's deepening economic crisis, as inflation hit 22.23% in October. The country’s foreign reserves have also plunged, falling from $15 billion in 2014 to an estimated $1.98 billion by December 2024. Facing mounting financial pressure, Bolivians are turning to cryptocurrencies for savings and daily transactions. From June 2024 to June 2025, the country's annual cryptocurrency transaction volume reached $14.8 billion. Furthermore, more retailers are pricing goods in the stablecoin USDT, showing cryptocurrency's burgeoning influence on the economy. Bolivia’s efforts align with a growing trend among nations battling inflation. In Venezuela, where inflation soared to 172% in April, cryptocurrencies serve as a crucial lifeline. Venezuelans often use stablecoins, colloquially known as "Binance dollars," to protect their wealth from the depreciating bolívar. Between July 2024 and June 2025, crypto transactions in the country totaled $44.6 billion. Similarly, Argentina has become Latin America's second-largest crypto market, recording $93.9 billion in yearly transaction volumes while battling a 31.3% inflation rate as of October. This pattern extends beyond Latin America. In Turkey, where inflation reached 32% in October, cryptocurrency transaction volumes soared to $200 billion between July 2024 and June 2025, marking the highest in the Middle East and North Africa. Meanwhile, Nigeria now leads Sub-Saharan Africa, with crypto transaction volumes totaling $92.1 billion over the same period. The country's tech-savvy youth and difficulties accessing foreign currency have driven this rapid adoption. The rising use of cryptocurrencies in economically strained countries highlights their potential as a safeguard against financial turmoil. People facing inflationary crises increasingly rely on stablecoins like USDT to preserve their financial security, as they value these stablecoins for their price stability. As global crypto adoption accelerates, Bolivia’s initiative could signal a broader shift in how nations integrate digital assets into their economies. These developments underscore cryptocurrency's growing significance as both a financial tool and a potential stabilizer amid global economic uncertainty.