Bolivia's state-owned energy company, YPFB, plans to utilize cryptocurrency for energy imports amidst a scarcity of dollars and fuel in the landlocked South American country. This shift comes as the country grapples with declining foreign currency reserves resulting from reduced natural gas exports, which have triggered a fuel crisis marked by long queues at gas stations and sporadic protests.
A YPFB spokesperson stated that a mechanism has been established to use cryptocurrency for fuel purchases following government approval to utilize digital assets to address demand. "From now on, these transactions will be conducted," the spokesperson noted, emphasizing that the new procurement system aims to uphold national fuel subsidies amid a shortage of traditional currency.
According to a government representative, although YPFB has not yet executed energy imports through digital currency, such a strategic move is in the pipeline. Bolivia, historically a net energy exporter due to its abundant gas reserves, now heavily relies on imports due to dwindling domestic gas production and a dearth of significant new discoveries.