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The Central Bank of Bolivia (BCB) has lifted its ban on Bitcoin and crypto payments, allowing financial entities to conduct transactions with digital assets. This move aims to modernize Bolivia’s payment system and bolster its struggling economy.
The central bank stated this change aligns Bolivia with Latin American crypto regulations. The regulatory shift marks the end of a ban on crypto use that began in 2014. Additionally, the government had prohibited banking entities from interacting with cryptocurrencies in December 2020 under Board Resolution N°144/2020.
The new regulations allow banks to transact in cryptocurrencies via approved electronic channels. However, BCB clarified that cryptocurrencies are not accepted as legal tender. While crypto assets are tradable via banks, companies are not required to accept them as payment.
Under its Economic and Financial Education Plan, the BCB plans to launch an awareness program. This initiative aims to educate the public about the risks associated with cryptocurrencies and how to manage them responsibly.
The new legislation was introduced in collaboration with the Financial Investigations Unit (UIF), the Financial System Supervisory Authority (ASFI), and the BCB. These government bodies produced the regulatory update, which became effective on June 26.
The legislation also aligns Bolivia’s crypto regulation with recommendations from the Latin American Financial Action Task Force (GAFILAT). This positions Bolivia among other Latin American nations adopting crypto to boost their economies.