Bolivia has approved Supreme Decree No. 5348, allowing YPFB to use USDT for fuel imports amid a U.S. dollar shortage. This decision comes after a financial crisis that has undermined the country’s purchasing power. Despite banning crypto trading in 2022, Bolivia is now turning to digital assets to address its fuel shortage, aiming to stabilize the economy.
Bolivia is innovating in its approach to address a critical fuel crisis by planning to utilize USDT, a stablecoin, for fuel imports, amid a pressing shortage of U.S. dollars. The government has issued Supreme Decree No. 5348, which empowers YPFB (Bolivian Fiscal Oilfields) to conduct transactions in digital assets necessary for importing oil derivatives.
This decree allows YPFB to procure foreign currencies from the public banking sector to secure essential fuels, including crude oil and diesel. The decision comes in light of a financial crisis that has impaired Bolivia’s purchasing power and led to a severe U.S. dollar shortage, the prevalent currency for international trade.
As indicated in a local report by El Deber, the government will now permit the YPFB to utilize cryptocurrencies like USDT to procure fuel, thereby seeking alternative solutions to the crisis. While the country had previously enacted a ban on cryptocurrency trading in 2022, this shift may offer a remedy for the current fuel shortage by reducing dependency on U.S. dollar reserves.
Despite the potential benefits, a dollar shortage has sparked a devaluation of local currencies, resulting in the Boliviano briefly appreciating against the dollar while the parallel dollar’s value surged. The government aims to stabilize the situation by implementing these new measures to import necessary fuel and other derivatives efficiently without further depleting its dollar reserves.
In summary, Bolivia’s recent Supreme Decree No. 5348 marks a significant shift in its fuel crisis strategy, allowing YPFB to use cryptocurrencies like USDT for fuel imports amidst a severe U.S. dollar shortage. This innovative approach may alleviate immediate concerns about fuel availability and financial instability, despite the prior ban on crypto trading. The success of these measures will depend on their implementation and their ability to stabilize local currency values in light of ongoing economic challenges.
Original Source: www.bitcoinsensus.com
