The Central Bank of Bolivia has lifted its blanket ban on using Bitcoin and other cryptocurrencies in the NFS. This significant move opens the doors for integrating exchanges and other crypto service providers into the Bolivian economy. The institution has derogated a 2020 resolution that prohibited financial institutions from facilitating crypto-related payments.
Central Bank of Bolivia Lifts Bitcoin Ban
Bitcoin and cryptocurrencies are now starting to be valued by countries that previously rejected them. The Central Bank of Bolivia has taken a historic step by enabling the cryptocurrency ecosystem in the nation. With Resolution N°082/2024, issued on Tuesday, the bank lifts any prohibitions related to these assets. This decision allows financial institutions to complete payments for acquiring these assets.
Recommendations and New Opportunities
The bank’s decision aligns with the recommendations of the Financial Action Task Force of Latin America (GAFILAT). GAFILAT’s evaluation of Bolivia suggested that it should “consider the regulation of Virtual Assets Service Providers (VASPs) in accordance with the public policy defined in the Bolivian context.”
Edwin Rojas Ulo, president of the central bank, stated that this new decision provides the population with an “additional mechanism that will contribute to the strengthening of financial and commercial activities.” However, the institution clarified that the boliviano (BOB) remains the only legal currency in the country, and digital assets are neither legal tender nor cash. Users of these crypto assets will have to deal with the risks associated with using and commercializing them.
What are your thoughts on this major shift in Bolivia’s stance towards cryptocurrencies?
