Bolivia will use the crypt for payment of energy imports – report

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Bolivia will use the crypt for payment of energy imports - report

Bolivi’s state-owned energy company IPFB plans to use cryptocurrant to pay for energy imports, toward to 13. Marta from Reuters. Movement occurs while the South American Nation faces a lack of foreign exchange reserves and gorgeous offers of domestic gas production.

The IPFB spokesman said the system was established to use the cryptocurrency to buy energy imports after the government has approved the use of digital property to meet the country demand. Although IPFB has not yet used the system, it plans to do so.

The report does not reveal which cryptocurrency will be used for payments. Stablecoins, which are digital funds related to FIAT currency, are often used to make cross-border transactions, although it is unclear that it will be the case in Bolivia.

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Fuel deficit In Bolivia, he led to protests and threats to strikes from workers, including farmers, who say the lack of fuel threatens their summer harvest. Only 35% -50% of the country’s public transport system is functional. Alejandro Gallardo, the Minister of Energy and Halcon, said there were challenges due to lack of foreign exchange.

The IPFB spokesman noted that the new purchase system is designed to support national fuel subsidies in the country in the middle of a lack of foreign currencies. “From now on, these (cryptocurnent) transactions will be implemented,” they said.

Cripto adoption in Bolivia is growing

In June 2024., Central Bank of Bolivia, Banco Central de Bolivia, raised his ban at bitcoin (Btc) and crypto payments, allowing financial institutions to transactions with digital resources. The ban was in place Since 2014. Years.

In September 2024, Bolivia reported 100% increase in stores with virtual meansWith approximately $ 15.6 million, the monthly property is traded monthly between July and September. It was traded in the amount of 48.6 million dollars to a large extent made of stablecoin. Stablecoins are often used in developing countries Whose local currency has experienced a high degree of devaluation or where there is a lack of foreign currencies.

The use of StableCoin received an additional momentum in Bolivia in October 2024. when the local bank is Banco Bisa introduced Stablecoin detention service. This service, which supported the country’s financial regulator, enables the inhabitants of the nation to buy, sell and trade Tether’s USDT (USDTT), Stablecoin in the form of an American dollar.

Cointelegraph wrote in September 2016. That he was Bolivia had a lot to get from the adoption of cryptocurri. At that time, a large part of the country’s citizens was unbound, with only 11% of the population using a debit card for payment and only 5% using credit cards. However, the country continued to support its ban until 2024. years, Calling the CRIPTO Pyramid Scheme in May 2017 years and the arrest of the crypto advocate.
Journal: Payments Bitcoin undermines centralized stablecoins