Crypto adoption continues in the South American country of Bolivia as a major bank announced the launch of a custody service for Tether’s USDt stablecoin.
Bolivian bank Banco Bisa has announced a custody service for USDt (USDT). The bank said that the service would allow its clients to buy, sell and transfer crypto through the bank.
Banco Bisa said the service will enable users to hold their assets, send them to relatives and make cross-border payments.
Bolivia’s financial regulator supports new service
Yvette Espinoza from the Autoridad de Supervisión del Sistema Financiero (ASFI) — Bolivia’s financial regulator — supported the bank’s offering, saying that it allows clients to carry out crypto transactions within the country’s regulatory framework. The regulator said this reduces the risks of unsafe interactions in the crypto market.
Franco Urquidi, the vice president of business at Banco Bisa, said in the announcement that customers will go through a verification process to give them the “peace of mind” that their transactions are conducted safely.
Bolivia banned crypto in 2014
In 2014, Bolivia banned the use of cryptocurrencies, prohibiting any currency that wasn’t issued or regulated by the Bolivian government.
At the time, the country clarified that it was illegal to use Bitcoin (BTC) and any other currency in the country. The central bank said this was a move to protect the nation’s currency and citizens from losing their funds due to uncontrolled currencies.
Bolivia changes stance on crypto assets
However, Bolivia started to shift its stance on crypto assets in 2024. On June 28, Bolivia lifted its ban on BTC and crypto payments, allowing financial entities to conduct transactions with digital assets.
Bolivian central bank’s notification on crypto transactions. Source: Banco Central de Bolivia
According to Banco Central de Bolivia, the move was made to elevate its economy and align its rules with other Latin American crypto regulations.
On Sept. 27, the country’s central bank reported a 100% rise in virtual asset trading since it lifted its BTC and crypto payments ban. The bank reported that $15.6 million in crypto was traded on an average monthly between July and September.
While Bolivia has softened its stance on cryptocurrency, the country has yet to implement a formal tax framework for crypto transactions.
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