Bolivia’s president-elect, Rodrigo Paz, intends to leverage blockchain technology to combat corruption and restore public confidence. Following his victory in the recent run-off election with 54.5% of the vote, Paz stated that his administration will prioritize fairness, technological advancement, and accountability.
He is scheduled to assume office on November 8, facing significant economic challenges, including fuel shortages and a scarcity of U.S. dollars. A cornerstone of Paz’s strategy is the implementation of blockchain and smart contracts in the government's procurement processes for goods and services.
This initiative is designed to enhance transparency and automation in public procurement, thereby minimizing opportunities for corruption and ensuring fairer contract awards.
Smart contracts, in essence, facilitate digital agreements that execute automatically once predefined conditions are met, eliminating the possibility of manual interference or manipulation. This system is expected to make it more difficult for officials to misappropriate public funds or engage in biased contract allocations.
Including Crypto in Bolivia’s Economy
Paz's second major proposal involves enabling citizens to declare their cryptocurrency assets into a new foreign-exchange stabilization fund. This fund aims to assist the government in managing its currency reserves and financing imports during periods of low dollar availability.
By accepting declared cryptocurrencies, Bolivia could potentially increase its financial resources and improve liquidity without needing to directly hold volatile digital assets.
While Paz advocates for the use of blockchain for its efficiency and transparency benefits, his approach differs from that of El Salvador, which has embraced Bitcoin more broadly. Paz's strategy is more pragmatic, focusing on utilizing crypto tools to strengthen Bolivia's existing economic framework rather than replacing its national currency.
JUST IN: 🇧🇴 Bolivia lifts ban on #Bitcoin and crypto payments, officially making it legal for financial entities.
— Watcher.Guru (@WatcherGuru) June 27, 2024
Bolivia’s Crypto-Friendly Shift
Bolivia has been gradually easing its stance on cryptocurrencies. The nation's central bank rescinded its ban on digital assets in 2024, leading to a significant increase in trading volumes. Several local businesses and financial institutions now accept USDT payments, indicating a gradual transition toward digital financial practices.
If President-elect Paz successfully implements his proposed initiatives, Bolivia could emerge as a leading example of how blockchain technology can enhance governance and promote genuine reform.