Bolivia Uses Crypto Assets to Secure Fuel Imports Amid Dollar Shortages

• Daily boliviano-to-crypto conversions and state subsidies aim to secure crude and diesel purchases abroad.
• Bolivia overturned its 2020 crypto ban; Central Bank advances digital tools while keeping boliviano as legal tender.

The Bolivian government approved Supreme Decree 5348, permitting state oil company YPFB to conduct international fuel purchases using cryptocurrency. The measure addresses a shortage of U.S. dollars, which has complicated foreign currency transactions for critical imports.

Under the decree, YPFB can buy crude oil, diesel, and gasoline production materials through crypto assets. Payments in Bolivian bolivianos will convert to cryptocurrency using daily exchange rates.

Costs linked to these transactions will qualify for subsidies managed by the Ministry of Hydrocarbons and Energies, provided invoices or debit notes are submitted. This extends Supreme Decree 5301, which previously authorized public companies to exchange crypto assets for foreign currency to fulfill contracts.

The policy follows reports of fuel shortages at gas stations and reduced dollar inflows due to lower exports of goods like soybeans. Bolivia revoked a 2020 ban on cryptocurrency transactions in June 2024, marking a shift in financial strategy. Central Bank President Edwin Rojas noted in October that Bolivia is expanding its use of digital financial tools.

The government emphasized the boliviano remains the only legal currency, with crypto assets limited to approved transactions. The reduce strain on foreign reserves and update YPFB’s payment methods, mirroring steps by other nations exploring digital assets for economic stability.

The decree introduces transparency rules for crypto transactions but does not modify existing currency laws. ETHNews analysts caution that fluctuating crypto markets and YPFB’s risk management practices will influence outcomes.