According to Cointelegraph, Bolivia's central bank has reported a significant increase in virtual asset trading since lifting its ban on Bitcoin in late June. The Banco Central de Bolivia (BCB) revealed that approximately $15.6 million in virtual assets were traded on an average monthly basis between July and September, marking a 105% increase compared to the average of the previous 18 months, from January 2023 to June 2024.
The total of $48.6 million traded over the last three months surpassed the combined total of the previous six months, with stablecoin transactions making up a large portion of the trades. The central bank attributed this rise to the lifting of a 42-month ban on Bitcoin and cryptocurrency payments by banks in June. Bolivia had initially banned Bitcoin in 2014.
BCB's acting president, Edwin Rojas Ulo, stated in a press conference that the central bank is paving the way for the use of crypto assets in Bolivia, emphasizing the country's strides towards an economic future with greater use of accessible digital instruments. The number of cryptocurrency transactions also saw a 141% increase over the last three months compared to the previous six months.
The surge in trading activity coincides with six additional financial institutions registering to offer virtual asset services between July and August, allowing banks to transact with cryptocurrencies through approved electronic channels. Rojas Ulo noted that the new regulation provides the population with an alternative mechanism for processing transfers to and from abroad and for electronic commerce payments, among other activities. He expressed hope that this integration would better position Bolivian firms to participate in international commerce and trade.
Since the ban was lifted, Bolivia's central bank has incorporated virtual assets into its Economic and Financial Education Program and has conducted 33 workshops nationwide, reaching over 3,000 people. World Bank data indicates that Bolivia's consumer price inflation was 2.58% in 2023, one of the lowest in Latin America, and the Bolivia boliviano has lost a marginal 2.4% in purchasing power against the United States dollar over the last five years.
