TL;DR
- Chinese electric vehicles sold in Bolivia using USDT, not yuan.
- USDT offers more stability and liquidity in emerging markets than the yuan.
- China’s de-dollarization efforts face challenges as crypto-dollars gain traction.
- Bitcoin and Ethereum show slight downward trends amid market fluctuations.
- Gold prices remain high, driven by expectations of U.S. rate cuts.
In a notable development highlighting the dynamics of global trade, a Chinese electric vehicle, the BYD Dolphin Mini, is being sold in Bolivia for USDT, a stablecoin pegged to the U.S. dollar. This transaction underscores the irony of China’s ongoing efforts to promote the yuan as a viable alternative to the dollar in international trade, particularly in BRICS nations. Despite these initiatives, USDT has emerged as the preferred currency for many consumers in emerging markets, indicating a shift in currency preference.
China has long championed de-dollarization, particularly in Latin America, where it has framed its efforts as a means of fostering South-South solidarity and reducing reliance on the U.S. dollar. In Bolivia, for instance, approximately 10% of trade is now conducted in yuan, and Brazil has established a substantial swap line with China. However, the reality on the ground reveals a different story. While China continues to excel in exports, particularly in sectors like electric vehicles, the yuan’s influence as a unit of account is waning.
The sale of the BYD Dolphin Mini for USDT exemplifies this trend. For consumers and merchants in countries facing inflation or capital controls, USDT provides a level of stability, speed, and liquidity that the yuan currently cannot match. The yuan is not designed for offshore use, which directly contradicts the monetary policies of the People’s Bank of China. As a result, while Chinese exports thrive in Latin America, they simultaneously drive demand for USDT rather than the yuan.
The situation presents a paradox: despite China’s ambitions for de-dollarization, Tether’s USDT is gaining ground in emerging markets, effectively becoming a digital dollar that outperforms the yuan. This trend is particularly significant as it highlights the limitations of China’s central bank digital currency (CBDC) initiatives, which have yet to gain traction outside of China. Stablecoins like USDT offer advantages in terms of speed and liquidity that CBDCs and yuan swap lines have struggled to provide.
The implications of this shift are profound. As USDT continues to dominate transactions in regions where China seeks to expand its influence, the Chinese government may find it increasingly challenging to assert monetary power commensurate with its trade strength. The anticipated de-dollarization in Latin America is unfolding, but not in the manner Beijing envisioned. Instead of establishing yuan-centric trade zones, the region is witnessing a grassroots re-dollarization through the adoption of crypto-dollars.
In terms of market movements, Bitcoin is currently trading above $114.5K, showing a slight downward trend amid renewed interest from institutional investors and expectations of U.S. rate cuts. Ethereum is also experiencing a minor decline, trading at around $4,400. Meanwhile, gold prices remain near record highs, driven by a weakening U.S. dollar and high central bank demand.
Overall, the rise of USDT in trade transactions in Bolivia and other emerging markets signals a significant shift in the global financial landscape. As stablecoins gain acceptance, the challenges facing traditional currencies like the yuan become more pronounced, complicating China’s de-dollarization ambitions.
In conclusion, the increasing reliance on USDT for transactions in emerging markets illustrates the ongoing dominance of the U.S. dollar, even in a digital format, and raises questions about the effectiveness of China’s monetary strategies.
See also: How to store Bitcoin safely
See also: What is DeFi?
This article is a summarized news brief for informational purposes only. Not financial advice.
Sources
- Asia Morning Briefing: China’s Car, America’s Currency — Why Stablecoins Keep the Dollar in the Driver’s Seat — https://www.coindesk.com/markets/2025/09/22/asia-morning-briefing-paying-for-a-chinese-car-in-usdt-shows-why-digital-dollars-rule