Bolivia Sees Surge In Crypto Transactions Following New Regulations

According to Odaily, Bolivia has experienced a significant increase in cryptocurrency transactions over the past three months following the legalization of digital payment channels. The Bolivian Central Bank recently reported that the country's monthly virtual asset trading volume surged from $7.6 million to $15.6 million, driven primarily by stablecoin transactions and growing public interest. This growth is attributed to the implementation of Executive Board Resolution No. 082/2024, which came into effect in June, allowing the purchase of virtual assets through electronic payment channels. The number of virtual asset transactions also saw a substantial rise, with over 1.1 million transactions recorded from July to September, compared to approximately 932,000 in the previous six months. Most of these transactions were conducted by individuals. Additionally, the Financial System Supervisory Authority (ASFI) reported that six financial institutions have begun using virtual assets in their operations, further integrating these digital tools into Bolivia's financial system. Data shows that the business activities of these institutions increased by 40% between July and August. To support this expansion, the Bolivian Central Bank launched an educational program to inform the public about the characteristics and risks of virtual assets. The program included 33 workshops nationwide, attended by over 3,000 people. Central Bank President Edwin Rojas Ulo emphasized that this initiative is part of a broader strategy to modernize the economy and enhance international business and financial activities. In late June, Bolivia lifted its ban on Bitcoin and other cryptocurrencies, which had been in effect since December 2020. On June 26, the Bolivian Central Bank officially announced that banks are now permitted to conduct cryptocurrency transactions. However, despite the authorization to trade cryptocurrencies through approved electronic channels, the Bolivian Central Bank reminded citizens that cryptocurrencies are not considered legal tender.