Has Tether’s USDT Stablecoin Become the Dollar Bolivia Actually Trusts?

Tether’s USDT has surged to a market capitalization of $172.279 billion, according to DefiLlama data, further cementing its position as the world’s largest stablecoin.

The milestone comes as Japanese carmakers Toyota and Yamaha, alongside China’s BYD, began accepting USDT payments in Bolivia.

USDT Adoption Accelerates in Bolivia

Tether CEO Paolo Ardoino highlighted the development, framing it as a turning point for mainstream stablecoin adoption.

Ardoino positioned USDT as the digital dollar for hundreds of millions in the emerging markets, highlighting the currency’s growing ubiquity beyond crypto-native circles.

He also acknowledged the surge in USDT market cap, with data on DefiLlama corroborating the outlook and showing that Tether accounts for 58.8% of total stablecoin market value.

The timing is significant, coming only months after Bolivia’s central bank (BCB) recently reported that crypto transactions in the country soared to $430 million in the 12 months since lifting its blanket ban on digital assets in 2024.

“In one year, operations in virtual assets grew by more than % and reached $430 million,” the BCB shared in a June post.

That figure represents a 630% year-over-year (YoY) surge, with the first half of 2025 alone recording $294 million in crypto payments, up from $46.5 million a year earlier. This is a jump of more than 530%.

The BCB sees crypto as an enabler to foreign currency transactions, including remittances, small purchases, and payments.

The country’s growing adoption comes as digital assets benefit micro and small business owners across various sectors, with new developments stretching perks to the automobile industry.

Bolivian legislator Mariela Baldivieso of the Comunidad Ciudadana party recently highlighted crypto’s potential as an enabler to Latin America’s economic foundation.

She explained more closely that Bolivia’s crypto adoption puts the country among the top five adopters in Latin America, citing progressive policy reforms.

Bolivia’s Macroeconomic Backdrop Explains the Momentum

Meanwhile, Bolivia’s macroeconomic outlook adds credence to the growing adoption. The country in South America is grappling with severe dollar shortages, 40-year-high inflation, and long fuel queues as foreign reserves dwindle.

The boliviano has lost nearly half its value on the black market this year, forcing households and businesses to seek stable alternatives.

While the government maintains an artificially steady official rate, the widening gap has pushed many into crypto rails, particularly stablecoins like USDT.

Economists, however, caution against interpreting the surge as evidence of long-term stability.

“This (crypto uptick) isn’t a sign of stability…It’s more a reflection of the deteriorating purchasing power of households,” Reuters reported recently, citing former central bank head Jose Gabriel Espinoza.

Still, Tether sees the trend as validation. Ardoino noted that USDT brings digital dollar savings to the world.

He also noted the addition of 2.9x more new $1+ holders than all other stablecoins combined over the past three months.

The integration of USDT into mainstream commerce in Bolivia mirrors how fast stablecoins are embedding into everyday economic life across emerging markets.

Nevertheless, while Latin America adds to the list of Tether’s growing footprint, the stablecoin issuer draws the line in Europe.

MiCA (Markets in Crypto Assets) is the main impediment, with the Tether executive refusing to adjust the firm’s principles to meet regulation.

“When MiCA becomes safer for consumers and stablecoin issuers, then we might reconsider,” Ardoino said in a post.

Meanwhile, industry peers and market competitors like Circle, which issues USDC stablecoin, leverage this edge.

Featuring among 14 stablecoin issuers formally classified as e-money tokens or EMT issuers, Circle received MiCA licenses earlier in the year.

This allows the firm to “passport” services across 30 EEA countries without needing separate approvals in each jurisdiction.