Bolivia’s Ministry of Trade and Imports has rejected a state-backed plan to use cryptocurrency for fuel imports.

This move, which marks a stunning policy reversal, signals a retreat from the government’s recent push to adopt digital assets as a workaround for dollar shortages.

Bolivia Rejects Crypto-for-Fuel Scheme Amid Energy Sector Turmoil

The initial plan, announced in March by Bolivia’s state-owned energy giant YPFB, aimed to use crypto to secure fuel imports. This was in response to acute shortages of both US dollars and refined fuel.

As reported by Reuters on March 13, the proposal had received government backing at the time.

But in a statement released Tuesday, Director of Trade and Imports Marcos Duran clarified that YPFB will not be permitted to use crypto for international transactions.

“YPFB must use Bolivia’s own resources and dollar-based financial transfers,” Duran said.

Head of digital assets at VanEck, Mathew Sigel, labels this a clear U-turn on crypto policy.

“U-Turn: Bolivia appears to back away from its crypto-for-fuel scheme,” Sigel quipped.

Lockridge Okoth is a Journalist at BeInCrypto, focusing on prominent industry companies such as Coinbase, Binance, and Tether. He covers a wide range of topics, including regulatory developments in decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), real-world assets (RWA), GameFi, and cryptocurrencies. Previously, Lockridge conducted market analysis and technical assessments of digital assets, including Bitcoin and altcoins such as Arbitrum, Polkadot, and...