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Bolivia opens the doors to Bitcoin: the regulatory shift that nobody expected
The Central Bank of Bolivia has lifted a 14-year ban on cryptocurrencies. This is not just a policy adjustment, but another earthquake in the Latin American crypto landscape.
What exactly changed?
Since December 2020, Bolivian banks were banned from any contact with cryptocurrencies. As of June 26, that ends. Financial institutions can now facilitate transactions with Bitcoin and other cryptocurrencies through authorized electronic channels.
But there is a crucial detail: Bitcoin is not legal tender in Bolivia. The president of the Central Bank, Edwin Rojas Ulo, was clear: “The boliviano (BOB) remains the only legal currency”. This means that your bank can help you buy Bitcoin, but no one is obligated to accept it as payment.
The context: economy in crisis
Bolivia has been dealing with persistent inflation and economic instability for years. While the Central Bank promises a “Economic and Financial Education Plan” to educate the public about risks, the reality is that the country seeks to modernize its payment systems without being as radical as El Salvador.
How it compares to the rest of Latin America
El Salvador (2021): Bitcoin = legal tender alongside the dollar. Result: a controversial experiment with BTC volatility complicating public finances.
Mexico: Allows crypto for transfers and payments, but charges tax on transaction gains in centralized exchanges.
Brazil and Argentina: Both tax crypto gains (Brazil: 15% income tax). Argentina elected a pro-Bitcoin president in response to uncontrolled inflation.
Bolivia: Accepts crypto in the banking system, but without giving it legal status. It is the middle ground between radical adoption and total rejection.
Why now?
Bolivia aligned itself with the recommendations of the Financial Action Task Force of Latin America. The measure was coordinated with the Financial Investigations Unit and the Authority for the Supervision of the Financial System. Translation: this is not a political whim, but a regional strategic move.
The trend is clear: Latin America no longer sees Bitcoin as an enemy, but as a tool to combat structural economic problems. Bolivia has just jumped on that train.