Catennaa, Monday, December 09, 2024 – Bolivia has seen a dramatic surge in cryptocurrency adoption after the Central Bank lifted its blanket ban on digital assets earlier this year. The number of purchase and sales operations for crypto has jumped by 112%, with over 252,000 Bolivians now holding digital assets, according to the bank.
From July to October 2024, the trading volume soared to $75 million, compared to $46.4 million in the first half of the year. This sharp rise reflects growing acceptance of cryptocurrencies in one of Latin America’s smaller economies. The Central Bank hailed the shift as a boon to the national payment system, with transactions primarily involving transfers to national banks, international transfers, and online purchases.
President of the Central Bank, Edwin Rojas Ulo, highlighted the growing utility of stablecoins like Tether (USDT) as a substitute for scarce U.S. dollars. He noted that stablecoins are increasingly viewed as proxies for traditional currency, enabling more secure and efficient financial transactions.
Bolivia’s financial institutions are stepping in to meet demand. Nine companies now offer crypto services, and in October, Bisa Bank became the first Bolivian bank to provide trading and custody services for USDT. Yvette Espinoza, head of Bolivia’s banking watchdog, emphasized the role of such services in mitigating risks associated with unregulated crypto activity.
The shift marks a significant pivot for Bolivia, signaling its entry into the growing global crypto market while addressing economic challenges like dollar shortages.
