Government seeks alternative payment methods as fuel crisis worsens
Bolivia’s state-run oil company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), will begin using cryptocurrency to pay for fuel imports following government approval.
The decision comes as the country faces a severe shortage of U.S. dollars, hindering its ability to sustain fuel subsidies and meet import costs.
YPFB officials confirmed the move to Reuters on March 11, emphasizing, “From now on, these (cryptocurrency) transactions will be carried out.”
Bolivia’s energy crisis deepens, pushing its economy ‘on the brink of collapse’
Once a net energy exporter, Bolivia now faces a worsening fuel crisis as natural gas production declines. Long lines at gas stations and transport disruptions highlight the urgency of securing alternative payment methods.
Political turmoil has further strained the economy, with a standoff between President Luis Arce’s government and opposition factions blocking $1.67 billion in foreign loans. The resulting dollar shortage has crippled Bolivia’s ability to pay for fuel imports.
While the government plans to expand electricity production by 5,290 MW between 2026 and 2050, fuel shortages remain an immediate threat.
Businesses are struggling, transport services are disrupted, and supply chain breakdowns are pushing the economy ‘on the brink of collapse’, as Bloomberg reported in October 2024.
Despite the crisis, Bolivia joins a growing list of energy-trading crypto nations
Bolivia is not the first nation to rely on cryptocurrency for energy transactions. In recent years, several countries facing economic instability and financial restrictions have turned to digital assets as an alternative payment method in global trade.
Venezuela embraced cryptocurrency in 2018, introducing Bitcoin and its now-defunct Petro token to bypass global sanctions, with the Maduro government reportedly amassing significant reserves through these transactions.
Iran followed in 2022, approving crypto payments for imports to circumvent U.S. sanctions, using Bitcoin for cross-border deals, and positioning itself as a pioneer in crypto-powered trade.
Russia also accelerated its adoption that same year, with oil companies exploring digital currency settlements for international transactions as Moscow openly discussed using crypto to bypass U.S. and EU restrictions.
Meanwhile, several energy-rich nations in the Middle East have begun experimenting with digital assets to conduct international transactions outside the SWIFT system.
As global energy trade shifts toward decentralized payment solutions, Bolivia’s move signals a growing trend among nations seeking financial alternatives in times of crisis.
