As the cryptocurrency landscape evolves, Bolivia is witnessing significant adoption with the introduction of this new service by Banco Bisa.

The bank’s initiative allows users to:

• Hold their USDT assets securely
• Transfer funds to family members
• Make cross-border payments with ease

Support from Financial Regulators

Yvette Espinoza from the Autoridad de Supervisión del Sistema Financiero (ASFI), Bolivia’s financial watchdog, praised the initiative, emphasizing its alignment with national regulations. She noted that the service mitigates risks associated with unregulated crypto transactions.

According to Franco Urquidi, the bank’s vice president of business, customers will undergo a verification process designed to ensure their transactions are secure.

A Shift in Policy: Bolivia’s History with Crypto

In 2014, the Bolivian government implemented a ban on cryptocurrencies, declaring illegal the use of any currency not issued or regulated by the state. This decision aimed to protect the official currency and safeguard citizens’ funds from volatility associated with unregulated cryptocurrencies.

Bolivia’s Changing Attitude Towards Crypto Assets

Recently, Bolivia has taken steps to rethink its approach to cryptocurrencies. On June 28, 2024, the country officially lifted its ban on Bitcoin (BTC) and permitted financial institutions to handle transactions involving digital currencies.

The Banco Central de Bolivia indicated that this policy change was essential for enhancing the economy and synchronizing national regulations with broader Latin American crypto norms.

After lifting the ban, Bolivia experienced a remarkable increase in virtual asset trading. Recent reports show a 100% growth in trading activity, with an average of $15.6 million in crypto transactions each month from July to September.

Despite these advancements in cryptocurrency acceptance, Bolivia has not yet established a formal tax framework for digital asset transactions.