Trends in Bolivia's cryptocurrency development: From ban to gradual acceptance
As a major bank announces the launch of custodial services for Tether's USDt stablecoin, the South American country Bolivia continues to progress in the cryptocurrency field.
1. Banco Bisa launches USDt custodial service
Bolivia's Banco Bisa has announced the launch of USDt (USDT) custodial services. The bank clearly stated that this service will enable customers to buy, sell, and transfer cryptocurrencies through the bank.
Banco Bisa stated that this service will allow users to hold their own assets, which can be sent to relatives and facilitate cross-border payments.
2. Support from financial regulatory agencies
Yvette Espinoza from Bolivia's financial regulatory authority, Autoridad de Supervisión del Sistema Financiero (ASFI), expressed support for the bank's initiative. She pointed out that this move allows customers to engage in cryptocurrency trading within the country's regulatory framework, reducing the risks of unsafe interactions in the cryptocurrency market.
3. Safeguards by Banco Bisa
Franco Urquidi, Vice President of Banco Bisa, mentioned in the announcement that customers will undergo a verification process to ensure their 'peace of mind' and guarantee the security of their transactions.
4. Historical changes in Bolivia's cryptocurrency policy
1. The ban of 2014: In 2014, Bolivia banned the use of cryptocurrencies, clearly stating that any currency not issued or regulated by the Bolivian government was prohibited in the country. At that time, the country clarified that the use of Bitcoin (BTC) and any other currency in the country was illegal. The central bank stated that this measure was to protect the national currency and citizens, to avoid financial losses caused by uncontrolled currencies.
2. Change of stance in 2024: However, by 2024, Bolivia began to change its stance on crypto assets. On June 28, Bolivia lifted the ban on BTC and crypto payments, allowing financial entities to engage in digital asset trading.
The Central Bank of Bolivia stated that this move is aimed at promoting economic development and aligning its rules with other Latin American cryptocurrency regulations.
3. Trading growth situation: On September 27, the country's central bank reported that since lifting the ban on BTC and cryptocurrency payments, the trading volume of virtual assets has increased by 100%. Bank reports indicate that the average monthly trading volume for cryptocurrencies from July to September was $15.6 million.
5. Current situation and prospects
Although Bolivia has softened its stance on cryptocurrencies, the country has not yet implemented a formal tax framework for crypto trading. In the future, as the cryptocurrency market continues to develop in Bolivia, relevant policies and regulatory measures may be further improved and adjusted to adapt to market changes and ensure financial stability and investor rights.
This article is for reference only and does not constitute investment advice.
