Bolivia's President-Elect Plans Blockchain for Government Transparency and Financial Stability

Rodrigo Paz secured Bolivia's presidency with 54.5% of the vote and plans to use blockchain technology pragmatically to combat corruption and increase government transparency. His administration aims to implement smart contracts in public procurement to reduce intermediaries and inefficiency, while also allowing citizens to declare cryptocurrency holdings into a foreign-exchange stabilization fund to support the national economy amid U.S. dollar shortages. This approach treats crypto as a financial tool without adopting Bitcoin as legal tender, reflecting a measured evolution rather than radical change. Since Bolivia's central bank lifted its ban on crypto transactions in 2024, digital assets have been increasingly integrated into the economy, with banks offering USDT custody and major companies accepting stablecoins. The government has also pursued international cooperation, including an agreement with El Salvador, to share blockchain regulatory and technical expertise. While supporters view blockchain as a means to add tamper-resistant transparency to public finances, critics caution that institutional reforms and oversight are still necessary to ensure effectiveness.