Bolivia Lifts Bitcoin Ban After Four Years, Allowing Authorized Crypto Transactions

The Central Bank of Bolivia officially lifted the ban on Bitcoin and other cryptocurrencies introduced in 2020

This policy change allows financial institutions to conduct cryptocurrency transactions through authorized electronic channels; This situation was announced by the Central Bank on June 26

This change in regulation is seen as a step in line with Bolivia's neighbor Argentina's more flexible approach to digital assets.

An In-Depth Look;

The Central Bank of Bolivia (BCB) announced that it has reversed its 2020 ban on Bitcoin and other cryptocurrencies. This new policy allows financial institutions to conduct cryptocurrency transactions through authorized electronic channels. This decision, announced on June 26, reflects the broader trend towards digital asset adoption in the region.

Context of Policy Change

The lifting of this ban came after a failed military coup led by General Jose Zuniga, who tried to overthrow President Luis Arce. Despite the political turmoil, this policy change, carried out in coordination with the Financial System Supervisory Authority (ASFI) and the Financial Investigation Unit (UIF), signals a planned and orderly approach towards cryptocurrencies.

With the lifting of the ban, the Central Bank clearly stated that cryptocurrencies are not accepted as a legal means of payment in the country. “Boliviano” will still remain the only legal currency. This means that businesses do not have to accept cryptocurrencies as a payment method and users assume all risks associated with cryptocurrency transactions. The Central Bank plans to add cryptocurrency security information to the Economic and Financial Education Plan to reduce these risks

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