Bolivia, a nation long defined by its vast natural gas reserves and a tradition of state-led economic policies, is at a crossroads. In the weeks since Rodrigo Paz assumed the presidency on November 8, 2025, the country has found itself grappling with a convergence of economic crises, policy overhauls, and the urgent need to chart a new course for its future. From bread lines in La Paz to the corridors of the nation’s power companies and the digital vaults of commercial banks, the ripples of change are being felt by citizens and businesses alike.
Perhaps nowhere is the tension between old and new more visible than in the daily struggle to buy a simple marraqueta bread roll. According to Reuters, the bread—an iconic staple whose price has been fixed for 17 years—has become increasingly scarce. Customers now queue for hours, only to find that the once-hearty 100-gram roll has shrunk to a mere 60 grams. This is not just a matter of nostalgia or inconvenience: the shortages signal deeper problems in Bolivia’s subsidy-heavy economic system, which, for years, kept basic goods artificially cheap while draining public finances.
On November 26, the National Confederation of Artisan Bakers (Conapaabol) announced it would raise the price of marraqueta from 7 U.S. cents to about 11 cents, effectively ending the long-standing price agreement. The move, prompted by delays in government-imported flour and other shortages, marks a significant shift for a population accustomed to state support. “The subsidy is killing us,” lamented baker Roberto Rengel, who said he had yet to receive promised ingredients from the state supplier for September.
Bolivia imports about three-quarters of its wheat—mainly from Argentina—but the state-run food agency EMAPA halted flour supplies in September due to government payment delays. Some vendors have simply stopped selling bread, while others have turned to pricier alternatives like cheese-filled sarnitas. “If bread goes up, everything goes up,” street seller Natividad Zabala told Reuters, voicing a widespread fear that the end of bread subsidies could trigger a cascade of price hikes on other essentials.
President Paz faces a daunting challenge: how to reform the subsidy-laden economic model of his socialist predecessors without provoking public outrage. He has pledged to overhaul subsidies on energy, transport, and basic goods, but has so far avoided sweeping changes. Economy Minister Jose Gabriel Espinoza told Reuters that the government was considering cutting subsidies such as those for diesel, though he offered no specific timeline. As Bolivian economist Gonzalo Chavez of the Universidad Catolica Boliviana explained, “Subsidies create distortions and blind price signals, leading people to believe cheap bread and cheap fuel are entitlements.”
But the bread crisis is just one symptom of a much larger malaise. Years of state-led policies and nationalization have deterred foreign investment and left Bolivia’s public finances in tatters. The country, once flush with natural gas revenue, now finds itself facing one of its worst economic crises in decades. After a long-term contract with Brazil expired in 2019, Bolivia’s natural gas production has steadily declined, and with it, the nation’s international reserves. As reported by Bitcoinsensus, reserves have plummeted from over $15 billion a decade ago to barely $2 billion today—enough to cover only a few weeks of imports.
This dire shortage of U.S. dollars has forced businesses to ration foreign exchange and left ordinary citizens scrambling to secure dollars for savings or travel. In response, the Paz administration has executed a dramatic policy reversal: after years of outright prohibition, Bolivia is embracing cryptocurrencies and digital assets as part of its financial system. On November 28, the government announced that, for the first time, commercial banks would be authorized to custody crypto for customers and offer crypto-related services. The move is intended to provide an alternative to the dollar and to stabilize the banking system.
“Digital assets will function as legal payment instruments within the financial system,” Economy Minister José Espínola told Reuters. “You can’t control crypto at the global level, so you have to recognize it and use it to our advantage.” By allowing custody of stablecoins and treating them as legal payment instruments, Bolivia aims to join other South American countries—such as Brazil and Argentina—that have embraced digital finance as a hedge against volatile fiat currencies. This marks a significant shift for a nation that, until now, had treated crypto with deep suspicion.
While the adoption of digital assets offers hope for easing Bolivia’s dollar crunch, it also carries risks. The government’s willingness to experiment with crypto reflects both desperation and pragmatism, as traditional financial tools have proven insufficient in the face of shrinking reserves and declining export revenues. Whether this gamble pays off remains to be seen, but it underscores the urgency with which Bolivia’s leaders are seeking new solutions.
Meanwhile, President Paz has signaled his intent to tackle another cornerstone of the Bolivian economy: energy. On November 26, he made his first official visit to Empresa Nacional de Electricidad (ENDE Corporación), the state-owned power company, to discuss the challenges facing the electricity sector. According to a press release published by BNamericas, ENDE’s executive president, Mario Larrain Saavedra, presented a comprehensive report on the company’s financial and operational hurdles and announced the launch of a sweeping audit to promote transparency.
Paz used the occasion to lay out a new energy policy, emphasizing the need to reduce Bolivia’s heavy dependence on natural gas for electricity generation and to move toward a more diversified and sustainable energy matrix. He stressed the importance of attracting foreign investment to strengthen electricity services for Bolivian families and announced plans for a better distribution of ENDE’s profits. In line with his electoral promise of a “50/50” resource split, part of the company’s earnings will be channeled into health, education, transport, and other municipal projects across the country.
He also took time to recognize the professionalism of ENDE’s technicians and workers, highlighting meritocracy and respect as guiding principles for the company and its ten subsidiaries. “Bolivia must open up to the world,” Paz declared, signaling a break from the insular policies of the past.
As Bolivia stands on the threshold of sweeping change, the stakes could hardly be higher. The country’s leaders are attempting to unwind decades of interventionist policy while navigating a perilous economic landscape. Whether these reforms will bring relief to bread lines, restore confidence in the financial system, and set Bolivia on a path to sustainable growth remains to be seen. One thing is clear: the coming months will test the resolve of both government and people as they confront the realities of a new era.
