Bolivia’s energy firm YPFB plans to use cryptocurrency for energy import payments to tackle a shortage of U.S. dollars and foreign currency reserves. This move is part of a growing trend among South American nations like Argentina and Venezuela, which are also using digital currencies for energy transactions amid economic challenges.
Bolivia’s state energy firm, YPFB, has announced plans to utilize cryptocurrency for settling energy import payments. This decision is aimed at addressing the nation’s pressing shortage of U.S. dollars and its declining foreign currency reserves, exacerbated by a fuel crisis and diminished natural gas exports, which have provoked public protests. YPFB sees cryptocurrency as a viable immediate solution to navigate these financial challenges.
YPFB will implement these cryptocurrency transactions as part of their operations moving forward. This move aligns with trends in South America, where countries such as Argentina and Venezuela have adopted cryptocurrencies for energy-related financial transactions. Argentina’s YPF previously ventured into crypto mining in 2023, and Venezuela’s PDVSA has been utilizing cryptocurrencies to mitigate the impact of U.S. oil sanctions.
Oliver Knight, who leads the CoinDesk data team, emphasizes the growing adoption of cryptocurrency among state-owned energy firms in South America. His experience includes a notable period as chief reporter at Coin Rivet and investments in Bitcoin since 2013, although he currently holds no crypto assets.
Bolivia’s YPFB is set to address its foreign currency shortage by using cryptocurrencies for energy imports. This strategic move follows a regional trend, with countries like Argentina and Venezuela also adopting crypto to combat economic challenges. As state-owned firms increasingly turn to digital currencies, the landscape of international energy transactions may shift significantly.
Original Source: www.coindesk.com
