Bolivia's state-owned energy firm YPFB will begin using cryptocurrency to pay for fuel imports as the country struggles with a severe shortage of US dollars.

The government recently approved the use of digital assets for energy purchases, aiming to maintain fuel subsidies despite dwindling foreign reserves. Long queues at petrol stations and scattered protests highlight the deepening crisis.

Once an energy exporter, Bolivia is now facing a decline in natural gas production due to a lack of discoveries.

Increased reliance on imports has led to supply disruptions. Santa Cruz recently experienced a severe diesel shortage, sparking roadblocks and strike threats from farmers and transport operators, who warned of prolonged protests unless immediate action was taken.

In response, Bolivia's Ministry of Hydrocarbons and Energy has announced plans to expand the national electricity system, focusing on renewable sources such as wind, solar, hydroelectric, and geothermal power.

The government aims to strengthen energy security and sustainability while positioning Bolivia as a leader in renewable energy.

While YPFB has not yet completed any transactions using digital assets, officials confirmed that plans are in place to begin soon. The move underscores Bolivia's urgency in securing essential resources and adapting to economic challenges through alternative financial solutions.

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