In Bolivia, the cryptocurrency landscape has changed dramatically in recent months.
Following an initial ban by the Central Bank of Bolivia (BCB) to avoid risks and fraud, the situation took a turn when the country's presidency announced the suspension of said ban, thus allowing financial transactions with digital assets.
According to a recent statement from the Central Bank of Bolivia (BCB), operations with virtual assets have grown by more than 100% in the last quarter, reflecting a significant change in the acceptance and use of cryptocurrencies and digital assets in the country.
The Central Bank stressed that this increase occurred after the suspension of the ban on digital assets, which has allowed and encouraged Bolivians to explore new economic opportunities with crypto assets.
Bolivia experiences a dizzying increase in cryptocurrency transactions
The BCB has reported In just three months, the number of cryptocurrency transactions reached more than 1,12 million, surpassing the six-month high of 936.000 transactions prior to the lifting of the ban on digital assets.
Source: Central Bank of Bolivia
According to the entity, this growth translates into a 141% increase in cryptocurrency operations, which demonstrates the growing interest of the Bolivian population in the use of these digital assets.
The average monthly amount traded in cryptoassets in the country has also risen significantly, from $7,6 million to $15,6 million, bringing the trading volume to a total of $46,8 million in cryptocurrency transactions in the last quarter.
According to the bank's report, most of these operations have focused on stablecoins, suggesting that Bolivians prefer stability in the crypto market.
At the end of June, Bolivia approved a resolution that enabled the use of electronic payment channels and instruments for the purchase and sale of virtual assets. This regulatory change has allowed more people to participate in the cryptocurrency ecosystem, facilitating access and operation of digital platforms in the country.
Source: Central Bank of Bolivia
Paving the way for modernization and growth
On the other hand, the Central Bank of Bolivia stressed that its new resolution has not only allowed for an increase in the number of cryptocurrency transactions, but has also paved the way for the modernization of the country's financial system. By enabling the use of crypto assets, Bolivia is positioned to integrate advanced financial technologies that can boost its economy.
Edwin Rojas Ulo, acting president of the Central Bank, said that «BCB is paving the way for the use of crypto assets in Bolivia», emphasizing the importance of this advancement for the economic future and the development of innovation in the nation.
The adoption of cryptocurrencies and digital assets can facilitate greater financial inclusion, allowing more Bolivians to access banking and payment services. This is especially relevant, considering that many people still do not have access to traditional bank accounts. Therefore, the possibility of making fast and secure transactions through cryptocurrencies can transform the way Bolivians do business and manage their finances.
Likewise, the integration of cryptocurrencies into the Bolivian financial system could attract foreign investment and foster international trade. The ability to process transfers abroad and make e-commerce payments can open up new opportunities for local businesses, which could result in sustained economic growth.
Education and awareness as keys to the development of virtual assets
Aware of the importance of education in the use of cryptoassets, The BCB has included the topic of virtual assets in its 2024 Economic and Financial Education Program.
To date, 33 workshops have been held nationwide with the participation of more than 3.000 people. These workshops aim to inform the population about the characteristics, risks and functioning of cryptocurrencies and virtual assets, promoting informed and responsible use of these new financial tools.
The bank stressed that education is key to ensuring that users understand both the opportunities and risks associated with cryptocurrencies. So, as more people get involved in this market, it is crucial that they are equipped with the knowledge needed to navigate an environment that can be complex and, at times, risky.
The renaissance of cryptocurrencies
The rise in cryptocurrency and digital asset transactions in Bolivia is a response to the need to revitalize the economy in the face of a shortage of foreign currency, and to open up new opportunities for investment and digital commerce in the country. By enabling electronic payment channels and instruments for cryptocurrency transactions, Bolivia is joining the global wave of adoption of these innovative technologies.
