Three major international vehicle manufacturers—Toyota, Yamaha, and BYD—have started accepting Tether (USDT) for car purchases in Bolivia, as the country grapples with collapsing US dollar reserves and a severe economic crisis. Tether CEO Paolo Ardoino announced the development on September 21, 2025, while BitGo, a crypto security firm, confirmed the first Toyota vehicle was purchased with USDT on September 20.
Bolivia's foreign exchange reserves have plummeted by 98% since July 2014, from $12.7 billion to just $171 million in August 2025, according to Trading Economics. This shortage has pushed businesses and consumers toward stable alternatives like USDT. Dealerships now display signs promoting USDT as an "easy, fast, and safe" payment method, with BitGo partnering to ensure smooth transactions and self-custody solutions.
Bolivia lifted its long-standing crypto ban in June 2024, allowing banks to process Bitcoin and stablecoin transactions. Since then, crypto transactions surged to $430 million in 12 months—a 630% year-over-year increase. The central bank reported $294 million in crypto payments in the first half of 2025 alone, up from $46.5 million a year earlier. Daily USDT liquidity in Bolivia grew from $20,000 to nearly $1 million in under a year.
Beyond automotive, Bolivian businesses use USDT for international trade, buying stablecoins locally or via offshore accounts to pay overseas suppliers. Airports and shops also price items in USDT to navigate currency instability. The country's top bank has called crypto a "viable and reliable alternative" to fiat, signing a memorandum with El Salvador to accelerate adoption.
Bolivia's upcoming runoff election on October 19 could further influence crypto policy, with candidate Rodrigo Paz Pereira proposing blockchain for transparency. Tether's market cap reached $172.279 billion, cementing its dominance with 58.8% of the stablecoin market. However, Tether avoids Europe due to MiCA regulations, while competitors like Circle (USDC) gain traction there.