Bitrabo Editorial
As the adoption of cryptocurrencies gains momentum in Latin America, more countries are welcoming digital assets. Bolivia recently announced the lifting of its 4-year ban on cryptocurrencies to update its payment system.
Bolivia Revolutionizes Payment System
The Central Bank of Bolivia (BCB) announced on June 26 that it had repealed its earlier resolution that prohibited the use of cryptocurrencies in the country. The new Resolution N°082/2024 now enables financial institutions to engage in crypto transactions. This decision was made in collaboration with the Financial System Supervisory Authority (ASFI) and the Financial Investigations Unit (UIF) following an evaluation by the Latin American Financial Action Task Force (GAFILAT).
Based on GAFILAT’s recommendations, Bolivia will regulate Virtual Asset Service Providers (VASPs) to align with the country’s public policy. The country has been working on a legal framework to integrate cryptocurrencies into its payment system and address modernization challenges.
President of the Central Bank of Bolivia, Edwin Rojas Ulo, stated that the BCB has been focused on modernizing the payment system and infrastructure. With the new resolution, Bolivians will have access to new financial mechanisms for their activities.
A Move Towards Wider Crypto Adoption
ASFI will oversee Financial Intermediation Entities (EIF) and provide education on virtual assets and associated risks to the public. Concurrently, the UIF will monitor and implement preventive measures to detect suspicious transactions linked to illegal activities involving virtual assets.
Despite the regulation allowing crypto transactions, the Boliviano remains the exclusive legal tender in Bolivia. Unlike El Salvador, where Bitcoin is a legal tender, Bolivia does not enforce the acceptance of cryptocurrencies as payment methods.
The Central Bank will integrate information on crypto assets into its Economic and Financial Education Plan to enhance public awareness and enable informed decision-making regarding virtual assets.