Bolivia Turns to Crypto for Fuel Imports Amid Economic Crisis

Bolivia has made a bold move to tackle its increasing economic crisis by allowing cryptocurrency payments for fuel imports, a step motivated by a severe shortage of U.S. dollars and falling natural gas exports.

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The state-owned energy company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), was given the green light under Supreme Decree 5348 to use digital assets to buy crude oil, diesel, and gasoline, with the aim to maintain fuel subsidies as foreign reserves shrink.

Bolivia Economy Worsens Under Fuel Chaos

Bolivia, once a regional energy giant, has collapsed as natural gas output—a most important export—drops due to a lack of new discoveries, which has further negatively affected the economy of the country.

The U.S. Trade Department reports hydrocarbons accounted for 22% of Bolivia’s exports in 2022, a figure that has since declined sharply, choking dollar inflows.

This has sparked a fuel crisis, with long lines at gas stations and protests flaring in cities like Santa Cruz, where recent diesel shortages led to strike threats from farmers and truckers.

Government cuts to fuel subsidies have also brought additional pressure on the agribusiness and gold mining industries, increasing fears of shortages of food.

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Bolivia Joins Latin America’s Digital Push; Will This Work?

To address the crisis, Bolivia reversed its 2020 cryptocurrency ban in June 2024, and now becomes one of the countries like Venezuela and Argentina to use digital assets for trade.

Supreme Decree 5348 permits YPFB to convert Bolivian bolivianos into cryptocurrency at daily exchange rates for international fuel transactions. The Ministry of Hydrocarbons and Energies will subsidize related costs, building on Decree 5301, which previously allowed state firms to exchange crypto for foreign currency.

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The government, through a spokesperson, confirmed that although the system is ready, to date, no transaction has been conducted up to March 14, 2025, showing an extension of the preparatory stage.

The plan aims to bypass Bolivia’s reliance on scarce dollars, ensuring fuel imports despite the country’s strained finances.

While the chosen cryptocurrency remains undisclosed, the strategy echoes regional precedents: Venezuela’s PDVSA has used Bitcoin for oil exports since 2020, and Argentina settled an LNG payment with Bitcoin in 2022. Bolivia’s focus, however, is unique in targeting fuel imports to stabilize domestic supply.

High Stakes: Volatility, Protests, and a Renewable Dream

The shift to crypto is not without risks. As cryptocurrency volatility could destabilize fuel pricing, potentially making subsidies plans to protect consumers invalid. Regulatory risk also exists, as Bolivia’s digital asset regulation continues to change following the policy reversal in 2024.

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Public frustration, already high due to economic hardship and subsidy reductions, may worsen if the plan fails. Recent military oversight of fuel delivery to combat smuggling has further increased tensions.

Bolivia’s approach is part of a wider Latin American trend of using cryptocurrencies as a substitute during economic hardship, with Venezuela and Argentina proving its effectiveness.

Globally, it could signal a new playbook for cash-strapped nations dealing with continuous dollar shortages, though its success depends on execution, market conditions, and supplier acceptance—details yet to be finalized.

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The government views this strategy as a temporary fix to boost its fuel supply while pursuing long-term energy goals. The Ministry of Hydrocarbons and Energy plans to expand electricity capacity by 5,290 MW between 2026 and 2050, making renewables such as wind, sun, and hydropower its priority.