According to Odaily, Edwin Rojas Ulo, the head of Bolivia's Central Bank, has recently discussed the institution's shift in stance towards cryptocurrencies and stablecoins. Rojas Ulo suggested that incorporating cryptocurrencies as an alternative in the national financial system could be beneficial. He pointed out that the decentralized nature of these assets could facilitate commercial and private activities for purchasing services, as well as cater to diverse needs.
However, he also acknowledged that some assets, like Bitcoin, could be used as investment tools for profit, but their volatility could be disadvantageous for users. Rojas Ulo also touched on stablecoins, explaining that dollar-pegged stablecoins like USDT offer distinct advantages for users unable to access dollars.
In previous news, Bolivia had lifted its ban on Bitcoin and other cryptocurrencies. The prohibition came into effect in December 2020. On June 26, the Central Bank of Bolivia (BCB) officially announced that banks could now engage in cryptocurrency transactions. Despite this, the Central Bank of Bolivia reminded citizens that cryptocurrencies are not considered legal tender, even though they can now be traded through authorized electronic channels.