Bolivia is now using cryptocurrency to finance fuel imports as the state-owned YPFB has been authorised to conduct crypto transactions.

This unprecedented move highlights the country’s deepening economic crisis and growing reliance on digital currencies in trade.

A sharp decline in gas exports has drained Bolivia’s foreign currency reserves, making it difficult to secure dollars for essential imports.

Fuel shortages have led to long lines at petrol stations, intensifying public frustration.

To bypass the dollar crunch, the government approved crypto payments for fuel, though transactions have yet to begin.

Officials hope crypto will stabilise imports, but the approach carries risks.

Compounding the crisis, recent fuel subsidy cuts have hit key sectors like agribusiness and gold mining, raising fears of food shortages and supply chain disruptions.

Protests have erupted, with gold miners considering strikes and blockades.

To curb fuel smuggling, the military is now overseeing distribution, further escalating tensions.

While crypto offers a short-term fix, Bolivia faces uncertainty as it navigates the complexities of digital finance amid economic turmoil.

Vanguard News