Bolivia officially legalizes crypto payments for bank
Bolivia has lifted its ban on bitcoin and other cryptocurrencies, allowing banks to conduct transactions with digital assets. This regulatory change was made official by the Central Bank of Bolivia (BCB) on June 26, 2024, revoking a previous ban that had been in effect since December 2020.
The adjustment in the regulation was the result of a collaboration between the BCB, the Financial System Supervisory Authority (ASFI) and the Financial Investigations Unit (UIF). The update aligns with the recommendations of the Latin American Financial Action Task Force (GAFILAT), which had urged Bolivia to adapt to the challenges of the crypto financial and digital environment.
While cryptocurrencies are now allowed to be traded through authorized electronic channels, the Central Bank has clarified that cryptocurrencies are not considered legal tender in Bolivia. This means there is no obligation for businesses or individuals to accept them as a means of payment.
Additionally, the BCB has announced that it will incorporate information on the risks associated with cryptocurrency commercialization in its Economic and Financial Education Plan. This effort seeks to educate the public on how to safely handle cryptocurrencies and the potential risks involved.