Bolivia to use crypto for energy imports amid U.S. dollar shortage: report

Bolivia’s state-owned energy firm YPFB will begin using crypto to pay for fuel imports as the country grapples with a severe shortage of U.S. dollars and dwindling natural gas production.

The decision follows government approval to use digital assets for purchasing energy supplies, as Bolivia struggles to maintain fuel subsidies amid declining foreign currency reserves, according to Reuters reporting.  

The move comes as long lines at gas stations and scattered protests highlight the worsening fuel crisis.

“From now on, these (cryptocurrency) transactions will be carried out,” a YPFB spokesperson told Reuters, emphasizing the urgency of securing energy resources despite financial constraints.

Bolivia’s dwindling energy supply

Once a net energy exporter, Bolivia has seen its gas production dwindle due to a lack of major new discoveries, forcing it to rely on imports. 

Santa Cruz, Bolivia, recently faced a severe diesel shortage, leading to blockades and strike threats. Farmers in Concepción and Yapacaní protested by blocking highways, disrupting trade, and jeopardizing their summer harvest.

Public transport operated at reduced capacity, and transport operators gave the government a 48-hour ultimatum before launching an indefinite strike.

Bolivia’s Ministry of Hydrocarbons and Energy announced a plan to expand the national electricity system by 5,290 MW from 2026 to 2050, prioritizing renewable energy sources like wind, solar, hydroelectric, and geothermal power. 

This initiative aims to enhance energy security, sustainability, and Bolivia’s leadership in renewable energy.

A government official confirmed that while the company has not yet used digital currencies for payments, plans are in place to do so.