The Tether USDT stablecoin is being used to tag prices in Bolivian stores, which indicates a significant change in the country’s economic landscape. Here are the details:
Basic Situation: Tether’s CEO Paolo Ardoino shared images of shops in Bolivia showing prices in USDT. Products like Cadbury Dairy Milk, Oreo, sunglasses, and Milka chocolate have USDT – priced tags. Some goods in Bolivia are exclusively sold with USDT prices, and the central bank of Bolivia has noticed this change.
Reasons for the Change: Bolivia has long been troubled by inflation and currency devaluation, and the local currency, the Bolivian boliviano, has seen its purchasing power decline sharply. In contrast, stablecoins like USDT, which are pegged to the US dollar, offer stability in value. This has led Bolivians to have more trust in digital currencies, causing USDT to gradually become an important part of people’s daily lives and economic transactions.
Related Services and Their Impact: In October 2024, Banco Bisa, a major local bank in Bolivia, introduced a stablecoin custody service, which was supported by the country’s financial regulator. This allows residents to buy, sell, and trade Tether’s USDT. This service, along with the use of USDT in retail transactions, has increased the acceptance and use of stablecoins in Bolivia, and may also drive up the demand and trading volume of USDT pairs, affecting price stability and liquidity in the market.
Views of Industry Experts: Experts believe that Bolivia’s adoption of USDT is a major milestone, which may inspire other countries to follow suit. It also reflects the growing importance of stablecoins in the global financial system, and at the same time, highlights the need for governments to formulate relevant policies to regulate the digital currency industry.
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