Bolivian President-elect Rodrigo Paz aims to combat government corruption using blockchain technology for public procurement and by incorporating cryptocurrencies into asset declarations for a national stabilization fund, marking a pragmatic shift toward digital assets in Bolivia’s economy.
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Rodrigo Paz’s election victory: Secured 54.5% of votes in the runoff against Jorge Quiroga, set to assume office on November 8 amid economic challenges like fuel shortages.
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Blockchain integration: Plans to apply blockchain and smart contracts in state purchasing to automate processes and eliminate discretionary corruption.
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Crypto in stabilization fund: Citizens can declare digital assets as part of a one-time regularization to seed a foreign-exchange fund, with monthly crypto trading volumes reaching $46.8 million by mid-2024, according to Banco Central de Bolivia data.
Bolivian President-elect Rodrigo Paz integrates blockchain to fight corruption and embraces crypto for economic stability. Discover his plans for public procurement and asset funds in this in-depth analysis. Stay updated on Bolivia’s crypto evolution today.
What are Rodrigo Paz’s Blockchain Plans for Bolivia?
Bolivian President-elect Rodrigo Paz intends to leverage blockchain technology as a core tool to address corruption in government operations, particularly through its application in public procurement processes. His platform, outlined by the Partido Demócrata Cristiano, emphasizes the use of smart contracts to automate and transparentize state purchasing, reducing opportunities for discretionary decisions that often lead to graft. This approach builds on Bolivia’s recent policy shifts toward digital assets, positioning blockchain not as a speculative venture but as a practical anti-corruption mechanism, with Paz set to take office on November 8 following his decisive runoff victory.
Bolivian President-elect Rodrigo Paz plans to use blockchain for public procurement and include crypto in asset declarations for a new fund.
Bolivian President-elect Rodrigo Paz plans to tackle corruption in his country’s government using blockchain technology.
The Associated Press reported Monday that Paz defeated rival Jorge Quiroga 54.5% to 45.5% and is set to take office on Nov. 8. Paz won Sunday’s runoff on a centrist, pro-market message and inherits an economy strained by fuel shortages and a US dollar squeeze, according to the AP.
Rodrigo Paz won Bolivia’s run-off presidential election on Sunday. Source: AP
For crypto observers, Paz’s government plan includes two concrete proposals related to digital assets and blockchain.
How Will Blockchain Transform Public Procurement in Bolivia?
Under Paz’s proposed reforms, blockchain technology would be integrated into Bolivia’s public procurement system to enhance transparency and efficiency. Smart contracts, self-executing agreements coded on blockchain networks, would automate key stages of state purchasing, from bidding to payment fulfillment, minimizing human intervention and the risks associated with it. According to the Partido Demócrata Cristiano’s 2025 government platform, this initiative targets the removal of discretion in contract awards, a common vulnerability in public spending that has historically fueled corruption scandals in Latin America.
The U.S. Treasury Department defines stabilization funds as reserve pools designed to support currency stability and facilitate essential imports during dollar shortages, a pressing issue in Bolivia. By allowing citizens to declare cryptocurrencies—such as Bitcoin or stablecoins like USDT—into this fund through a one-time asset regularization program, the government could diversify its reserves beyond traditional fiat holdings. Official data from the Banco Central de Bolivia indicates that cryptocurrency trading volumes have surged, averaging $46.8 million monthly by June 30, 2024, up from previous levels, reflecting growing domestic adoption.
Expert analysts, including those cited in reports from the Associated Press, note that Paz’s stance appears pragmatic rather than ideologically driven. He views blockchain primarily as an anti-corruption instrument rather than a pathway to full Bitcoin adoption at the national level. There is no indication in his platform of plans to hold BTC in sovereign reserves or legalize retail cryptocurrency use on a broad scale. Instead, the focus remains on leveraging digital assets for immediate economic relief, such as converting declared holdings into hard currency to bolster import capabilities.
This approach aligns with broader trends in South America, where countries like El Salvador have pioneered Bitcoin as legal tender since 2021. In July 2024, Bolivia’s central bank signed a memorandum of understanding with El Salvador, describing cryptocurrencies as a “viable and reliable alternative” to traditional fiat systems. The agreement emphasizes cooperation on policy development, intelligence sharing, and tools to modernize payment infrastructures, aiming to enhance financial inclusion in underserved regions. Banco Central de Bolivia reported year-to-date crypto trading volumes of $294 million by mid-2024, underscoring the sector’s momentum.
Paz’s election victory, with 54.5% of the vote, signals a shift toward pro-market policies that could accelerate these developments. Inheriting an economy plagued by fuel shortages and currency pressures, his administration’s emphasis on blockchain could set a precedent for technology-driven governance in the region. Financial experts from institutions like the Inter-American Development Bank have long advocated for such innovations, highlighting how blockchain can reduce procurement costs by up to 20% through automation, based on global case studies.
Frequently Asked Questions
What triggered Bolivia’s recent openness to cryptocurrencies under Paz’s leadership?
Bolivia’s central bank lifted an operational ban on crypto transactions in June 2024, authorizing regulated electronic channels to modernize payments. This move, combined with Paz’s platform pledging blockchain for anti-corruption, responds to economic strains like dollar shortages, with monthly trading volumes doubling to $46.8 million, fostering institutional adoption like Banco Bisa’s USDT custody services.
How does Rodrigo Paz plan to use crypto in Bolivia’s economy?
Rodrigo Paz envisions cryptocurrencies playing a supportive role in economic stabilization, allowing asset declarations to fund a foreign-exchange reserve pool. This pragmatic integration, detailed in his party’s platform, treats digital assets as convertible holdings to address import needs, without pursuing full national adoption like El Salvador’s Bitcoin model, ensuring steady currency support amid volatility.
Key Takeaways
- Election Impact: Rodrigo Paz’s 54.5% runoff win positions him to implement blockchain reforms starting November 8, addressing Bolivia’s fuel and dollar crises through pro-market policies.
- Anti-Corruption Focus: Blockchain and smart contracts will automate public procurement, drawing from the Partido Demócrata Cristiano platform to eliminate graft in state spending.
- Crypto Integration: Declaring digital assets into a stabilization fund broadens reserves, backed by $294 million in year-to-date trading volumes per Banco Central de Bolivia, offering quick liquidity without long-term holdings.
Conclusion
Bolivian President-elect Rodrigo Paz‘s blockchain initiatives and cryptocurrency inclusion in asset declarations represent a measured step toward digital economic reform, prioritizing anti-corruption in public procurement and financial stability. As trading volumes continue to rise and partnerships like the one with El Salvador deepen, Bolivia’s crypto policy evolution could inspire regional peers. Investors and policymakers should monitor these developments closely, as they signal potential for broader adoption in stabilizing volatile markets—stay informed for updates on emerging blockchain applications in governance.
By COINOTAG Staff | Published: October 2025 | Updated: October 2025
Bolivia Embraces Digital Currency Payments
Cointelegraph has tracked Bolivia’s crypto policy turn since 2024. The country’s central bank, Banco Central de Bolivia, lifted an operational ban on crypto transactions in June 2024, authorizing regulated electronic channels and signaling a modernization of payments. Months later, average monthly digital asset trading doubled versus the prior 18-month average, the bank said.
The shift continued into the real economy. In October 2024, Banco Bisa launched USDt (USDT) custody for institutions, a first mover among Bolivian banks. In March, state oil firm YPFB was reported to be exploring crypto for energy imports amid US dollar scarcity. By September, major auto brands’ local distributors, including Toyota, Yamaha and BYD accepted USDT, reflecting rising merchant-side experimentation.
On July 31, the central bank also 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 boost inclusion. The bank said monthly crypto trading volumes have reached $46.8 million per month and $294 million year-to-date by June 30.
