Bolivia has authorized its state-run oil company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), to use crypto for fuel imports in response to a severe shortage of U.S. dollars and foreign currency reserves.
This decision comes amid an ongoing fuel crisis marked by long lines at gas stations and protests across the country.
President Luis Arce's administration issued a decree allowing YPFB to use both crypto and U.S. dollars to purchase crude oil, diesel, and related products. This measure aims to address the shortfall in foreign currency needed for fuel imports.
Bolivia's dwindling natural gas exports and lack of new discoveries have significantly reduced foreign currency reserves.
The country, once a net energy exporter, now relies heavily on fuel imports to meet domestic demand.
While YPFB has developed a system for crypto transactions, it has not yet conducted any purchases using digital currencies. The plan is expected to support national fuel subsidies and stabilize the energy market.
Bolivia joins other nations like Venezuela and Iran in leveraging crypto for energy trade, often as a way to bypass economic challenges or sanctions.
This move reflects the country's efforts to explore alternative financial solutions amid economic pressures and declining energy production.
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