Bolivia's central bank has lifted its infamous cryptocurrency ban. Severe restrictions were in place since 2014. But the future is already here, and financial institutions can now conduct digital asset transactions.
The central bank aims to modernize Bolivia's payment system. It hopes to boost the struggling economy and align with regional crypto regulations.
In 2020, the government banned banks from crypto interactions. The new rules permit approved electronic channels for crypto transactions.
Cryptocurrencies are not legal tender in Bolivia. Companies are not required to accept them as payment. However, banks can now trade crypto assets.
The central bank plans a public awareness program. It will educate citizens on crypto risks and responsible management.
Three government bodies collaborated on the regulatory update. These include the Financial Investigations Unit, Financial System Supervisory Authority, and central bank.
The legislation aligns with Latin American Financial Action Task Force suggestions. Bolivia joins other Latin American nations adopting crypto to boost their economies.
Many Latin American countries face economic challenges. Rising inflation has forced them to seek alternative solutions. Cryptocurrencies have emerged as a popular new economic model.
El Salvador adopted Bitcoin as legal tender in 2021. It remains the only country to do so globally.
Mexico allows cryptocurrency for value transfers and payments. It does not recognize crypto as legal tender. The country taxes profits from centralized exchange crypto sales.