Bolivia’s central bank, Banco Central de Bolivia, has revoked its ban on Bitcoin and cryptocurrency payments. This will allow financial entities to carry out transactions with digital assets and marks the end of a prohibition that in 2014.
The decision to lift the ban is aimed at modernizing Bolivia’s system and boosting its struggling economy while aligning it with crypto regulations in Latin America. recently approved measures enable banks to engage in cryptocurrency transactions through approved electronic channels but clarified that are not considered legal tender.
Despite this change, the government does not recognize cryptocurrencies as tender, and companies are not obligated to accept them as payment. As part of its and Financial Education Plan, Banco Central de Bolivia plans to launch an awareness program for the public about potential risks associated with cryptocurrencies.
The new regulations were developed collaboratively by Banco de Bolivia along with the Financial Investigations Unit, the Financial System Supervisory Authority, and effective on June 26th.
This move brings Bolivia’s crypto regulation in line with from the Latin American Financial Action Task Force. It joins other Latin American nations like El that have embraced Bitcoin as legal tender alongside traditional currency (USD) in efforts to address challenges.
Mexico doesn’t recognize cryptocurrency as legal tender but accepts it for value transfers while Brazil introduced income tax regulations in 2023 imposing a 15% tax crypto profits amid increased adoption of digital currencies. Argentina also elected a pro-Bitcoin following El Salvador’s lead in addressing rampant inflation.
In summary, several countries across Latin are turning towards cryptocurrencies as alternative economic solutions amidst economic struggles and rising inflation – indicating a shift towards embracing digital assets within the region.