Cryptocurrency trading volume doubles after Bolivia ban lifted
Cryptocurrency activity surges in Bolivia, trading volumes double after central bank lifts ban
According to data from the Central Bank of Bolivia, crypto-asset-related activity has increased significantly in the past three months since the institution lifted a blanket ban on using the banking system to trade crypto-assets in June. Transaction volume has doubled compared with the average level, with stablecoin transactions being particularly active, while the number of transactions has also increased.
A report released by the Central Bank of Bolivia revealed that after the ban was lifted, cryptocurrency trading volume increased by more than 100% on average in the next three months. Specifically, it increased from an average of $7.6 million in the period from January 2023 to June 2024 to $15.6 million in the period from July 2024 to September 2024.
The total transaction volume in these three months was as high as 46.8 million US dollars, far exceeding the sum of the transaction volume in the previous six months. Although the bank did not provide detailed trading data for each coin, it made it clear that the majority of trading activity involved stablecoins, namely those tokens that are pegged to the value of the U.S. dollar.
Additionally, the bank reported a 141% increase in the average number of transactions over the past three months from 155,300 to 374,500. During the reporting period, transaction volume reached 1,123,000, exceeding the 932,000 registered between January and June 2024.
At the same time, financial institutions’ use of digital media to buy and sell digital assets has also increased by 40%.
Edwin Rojas Ulo, president of the Central Bank of Bolivia, affirmed the institution’s efforts in driving cryptocurrency adoption. He emphasized:
“The BCB (Central Bank of Bolivia) is paving the way for the use of crypto-assets in Bolivia. Through greater use of convenient digital tools, our country is moving towards an economic future.”
Rojas Ulo has previously emphasized the importance of stablecoins as an alternative to the U.S. dollar for Bolivians, claiming that using stablecoins is “just like North American currency transactions, although people are using these digital assets for various activities.”
