Now that the government-owned YPFB has been given permission to carry out cryptocurrency transactions, Bolivia is using them to pay for fuel imports.
The extra ordinary measure taken by the country clearly exposes the worsening economic landscape of the country and the heavy reliance on virtual currencies globally.
Bolivia's foreign exchange reserves have been depleted by a steep drop in gas exports, making it challenging to get dollars for necessary imports. Long lineups at gas stations due to fuel shortages have exacerbated popular annoyance. The government authorized cryptocurrency payments for fuel as a way to get around the dollar crisis, although transactions haven't started yet.
Although their are clearly risk that is associated with this measures , but according to the officails report, they hope that with this measure imports will be stabilized.
The reduction in fuel subsidies worsened the economic crisis as it affected gold mine and agribusiness which are said to be few of the important industries, this is also likely to affect food and supply chain.
Gold miners are contemplating strikes and blockades as protests have broken out. Tensions have increased as the military is now controlling distribution in an effort to stop fuel smuggling. Although cryptocurrency provides a temporary solution, Bolivia must manage the intricacies of digital banking in the midst of economic unrest, which presents challenges.