Bolivia’s Ministry of Trade and Imports has rejected a state-backed plan to use cryptocurrency for fuel imports.
This move, which marks a stunning policy reversal, signals a retreat from the government’s recent push to adopt digital assets as a workaround for dollar shortages.
Bolivia Rejects Crypto-for-Fuel Scheme Amid Energy Sector Turmoil
The initial plan, announced in March by Bolivia’s state-owned energy giant YPFB, aimed to use crypto to secure fuel imports. This was in response to acute shortages of both US dollars and refined fuel.
As reported by Reuters on March 13, the proposal had received government backing at the time.
But in a statement released Tuesday, Director of Trade and Imports Marcos Duran clarified that YPFB will not be permitted to use crypto for international transactions.
“YPFB must use Bolivia’s own resources and dollar-based financial transfers,” Duran said.
Head of digital assets at VanEck, Mathew Sigel, labels this a clear U-turn on crypto policy.
“U-Turn: Bolivia appears to back away from its crypto-for-fuel scheme,” Sigel quipped.
The crypto reversal comes after Russia’s Gazprom announced its exit from Bolivia’s Azero gas project, ending a 16-year involvement.
According to The Moscow Times, the departure reflects the broader instability in Bolivia’s energy sector, marked by falling gas production and increased reliance on fuel imports.
With dwindling foreign reserves, Bolivia has faced mounting pressure to diversify payment methods for essential imports. The crypto-for-fuel concept was seen as a bold, if risky, workaround to bypass the country’s dollar liquidity crisis.
However, the Ministry’s rejection raises fresh questions about coordination within Bolivia’s government and the viability of crypto in sovereign trade arrangements, particularly in volatile or resource-constrained economies.
eToro
eToro
eToro
eToro
YouHodler
Wirex
NEXO
MEXC
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
