Bolivia’s State-Owned Energy Company to use Cryptocurrency to pay for Energy Imports

Bolivia’s state energy firm YPFB would pay for Energy imports using cryptocurrency amid biting dollar and Fuel scarcity

The landlocked South American country is experiencing a steep slide in foreign currency reserves after years of reduced natural gas exports, a primary FX source

A spokesperson told Reuters that YPFB is exploring using cryptocurrency to purchase fuel imports after the country’s government approved the use of digital assets

“From now on, these (cryptocurrency) transactions will be carried out,” the spokesperson said, explaining that the crypto option is considered to support the national fuel crisis and mitigate the effect of biting currency scarcity

Crypto Payments for Energy

Bolivian YPFB’s plan to use crypto to pay for energy imports is not the first time crypto has been used to pay for energy

In December 2019, Ukraine’s Energoatom, a state-owned nuclear power company, partnered with Bitfury to explore cryptocurrency payments for electricity exports

In 2020, Venezuela’s state oil company, PDVSA, began accepting Bitcoin and Ethereum for crude oil and fuel exports. Reuters reported that this shift allowed PDVSA to settle payments with select international buyers, including energy traders, circumventing dollar-based restrictions.

In May 2022, Argentina’s energy firm Energía Argentina SA paid for a liquefied natural gas (LNG) shipment from Gunvor using Bitcoin, facilitated by Lemon Cash, a local crypto platform. Forbes reported that this $20 million deal addressed dollar scarcity, predating Bolivia’s move

The use of crypto in a lucrative field like the energy sector strongly indicates a long-term use case for crypto and a strong case for broader adoption