Welcome back Bolivia, crypto is allowed again
Good news for Bolivians interested in crypto! After a 4-year ban, cryptocurrency is now allowed to be used again in Bolivia. The Central Bank of Bolivia (BCB) wants to modernize the payment system with this.
Ban lifted
On June 26, the BCB known that an earlier decision to ban cryptocurrencies has been revoked. The previous regulation prohibited financial institutions from doing business with cryptocurrency. With the new law, banks and other financial parties are allowed to conduct transactions with crypto.
The decision was made in collaboration with financial supervisory authorities. The reason for this was an evaluation of the financial system in Bolivia. Following this evaluation, it was recommended to draw up rules for companies trading in cryptocurrency.
BCB President Edwin Rojas Ulo stressed that the bank is constantly working to renew the payment system. With the new law, it is hoped that Bolivians will have more opportunities for financial activities.
He says:
‘The BCB, within the framework of its policies, has continuously promoted the modernisation of the national payment system and the development of the payment infrastructure, making viable through its actions the adoption of technological innovations and new payment systems, and is currently becoming a regional reference in terms of interconnection, interoperability and digital financial inclusion, promoting the active and equal participation of banking and non-banking entities and fostering the democratisation of financial services. Within this framework, Council Resolution No 084/2024 will provide the population with an additional mechanism that will contribute to strengthening financial and commercial activities.’
Supervision and information
Financial institutions will supervise financial institutions that work with crypto. In addition, there is attention for education. The population will be informed about the operation and risks of crypto money.
Important to know: the Boliviano remains the only official currency in Bolivia. Bitcoin or any other crypto therefore does not function as cash and retailers do not have to accept it as a payment method.
The Central Bank wants to better inform the population about cryptocurrency. Ultimately, the goal is for Bolivians to make informed choices when deciding to invest or use crypto as a means of payment.
