Introduction
Bolivia’s President-elect Rodrigo Paz is launching a technological offensive against government corruption, with blockchain technology and smart contracts at the forefront of his reform agenda. The centrist leader, who secured 54.5% of the vote in Sunday’s runoff election against Jorge Quiroga, plans to implement these digital tools specifically in public procurement systems where discretion and opacity have historically enabled corrupt practices. This initiative represents one of two concrete digital asset proposals in his government plan, signaling a significant shift toward technological solutions for governance challenges in Bolivia’s strained economy.
Key Points
- Blockchain implementation will automate public procurement contracts to eliminate human discretion in state purchasing
- The initiative is part of the Christian Democratic Party's official 2025 government platform program
- Paz's administration will also require cryptocurrency declarations for assets in a new government fund
A New Technological Approach to an Old Problem
The core of President-elect Paz’s anti-corruption strategy centers on implementing blockchain technology and smart contracts in Bolivia’s public procurement systems. According to the official 2025 government platform program of his Partido Demócrata Cristiano, these technologies will be specifically deployed to ‘remove discretion from state purchasing.’ This approach targets a fundamental weakness in many government systems worldwide: the human element in contract awards and procurement decisions that can be manipulated for personal gain.
The automation of contract processes through smart contracts represents a paradigm shift in how Bolivia will handle public spending. By encoding contract terms and conditions directly into self-executing code on a blockchain, the system eliminates opportunities for officials to exercise favoritism or demand kickbacks. Every transaction and contract modification would be permanently recorded on an immutable ledger, creating an auditable trail that can be monitored by oversight bodies and the public alike.
Political Context and Economic Challenges
Rodrigo Paz’s election victory comes at a critical juncture for Bolivia’s economy, which has been struggling with fuel shortages and a severe US dollar squeeze. His centrist, pro-market message resonated with voters seeking stability and reform after years of economic challenges. The 54.5% to 45.5% victory over rival Jorge Quiroga provides Paz with a clear mandate to implement his technological and economic reforms when he takes office on November 8.
The blockchain initiative forms part of a broader strategy to restore confidence in Bolivia’s institutions and attract foreign investment. By addressing corruption directly through transparent technological solutions, the Paz administration aims to create a more predictable business environment. This is particularly important given the country’s current economic pressures, where efficient use of public funds becomes even more critical during periods of scarcity.
Implementation and Broader Digital Asset Strategy
The blockchain procurement system represents just one component of Paz’s two-part digital asset strategy. The second proposal involves including cryptocurrency in official asset declarations for a new government fund. This dual approach demonstrates a comprehensive understanding of how digital assets and blockchain technology can work in tandem to improve governance—using blockchain for process transparency while formally recognizing cryptocurrencies as legitimate financial assets.
For the public procurement system, the implementation will likely involve creating a permissioned blockchain where authorized government entities, contractors, and oversight bodies can participate. Smart contracts would automate key procurement milestones—from bid submission and evaluation to payment release—based on predefined, transparent criteria. This technological infrastructure would make the entire procurement lifecycle visible and tamper-resistant, significantly raising the barrier for corrupt activities.
The success of this initiative could position Bolivia as a regional leader in government technology innovation. If effectively implemented, the blockchain-based procurement system could serve as a model for other developing nations grappling with similar corruption challenges. The move also signals Bolivia’s willingness to embrace emerging technologies despite current economic constraints, potentially opening doors for technology sector investment and development.
📎 Related coverage from: cointelegraph.com