The government of Bolivia plans to integrate cryptocurrencies and stablecoins into the financial system to modernize the economy. Banks can custody crypto for clients, allowing digital currencies as legal tender for savings, credit, and loans. Inflation prompts Bolivians to adopt stablecoins, with the boliviano’s average inflation exceeding 22% in the 12 months to October. Businesses denominate prices in USD-pegged stablecoins like USDT due to currency instability. Bolivia’s state-owned energy company is developing a framework to pay for energy imports in crypto. Vehicle manufacturers Toyota, Yamaha, and BYD Company now accept USDT as payment amid US dollar shortages. Stablecoins help fill demand for US dollars in countries with high inflation and currency controls, providing an alternative store of value.

Read more at Cointelegraph: Bolivia To Integrate Crypto in Economic System