Bolivian President-elect Rodrigo Paz plans to make use of blockchain technology to fight corruption in his country's government.
The Associated Press reported Monday that Paz defeated his rival Jorge Quiroga 54.5% to 45.5% and is predicted to take office on Nov. 8. Paz won Sunday's runoff with a centrist, pro-market message and inherits an economy affected by fuel shortages and a U.S. dollar shortage, in line with the AP.
Rodrigo Paz won the presidential runoff election in Bolivia on Sunday. Source: AP
For crypto watchers, Paz’s government plan includes two specific proposals related to digital assets and blockchain.
Blockchain joins Bolivia’s reform agenda
The first plan is to make use of blockchain and smart contracts in public procurement. The Partido Demócrata Cristiano's Official Government Platform Program 2025 guarantees the usage of blockchain technologies and the usage of smart contracts to eliminate discretion in government purchasing. The proposal goals to combat corruption in government purchasing by automating some contract processes.
The second is a program that enables residents to deposit crypto assets right into a latest currency stabilization fund created by an asset regulatory initiative that explicitly lists crypto. According to the US Treasury Department, these funds are reserve pools used to stabilize the currency and finance essential imports when the US dollar is briefly supply. The inclusion of cryptocurrencies expands the ways through which the federal government can tax or quickly convert to hard currency without owning volatile tokens.
Paz looks crypto-pragmatic but will not be a Bitcoin (BTC) maximum. Its platform presents blockchain as an anti-corruption tool and treats declared crypto assets as a part of a one-time asset regularization initiative to capitalize a currency stabilization fund. There is not any evidence yet of a policy to adopt BTC nationally, hold it in reserves, or introduce retail legalization.
Bolivia relies on digital currency payments
Cointelegraph has been tracking Bolivia's crypto policy transformation since 2024. The country's central bank, Banco Central de Bolivia, lifted an operational ban on crypto transactions in June 2024, allowing regulated electronic channels and signaling a modernization of payments. Months later, average monthly trading in digital assets doubled in comparison with the previous 18-month average, the bank said.
The shift to the true economy continued. In October 2024, Banco Bisa launched USDt (USDT) custody for institutions, a pioneer amongst Bolivian banks. In March, it was reported that state oil company YPFB was exploring cryptocurrencies for energy imports amid the US dollar shortage. In September, local dealers of major automobile brands including Toyota, Yamaha and BYD began accepting USDT, reflecting increasing experimentation on the dealer side.
On July 31, the central bank signed a memorandum with El Salvador calling crypto a “viable and reliable alternative” to fiat and pledging cooperation on policy and intelligence tools to modernize payments and promote inclusion. The bank said monthly crypto trading volume reached $46.8 million monthly as of June 30 and $294 million year-to-date.
