Tech
Bolivia lifts Bitcoin ban and legalizes cryptocurrency transactions for banks
Bolivia’s central bank has decided to lift a ban on payments using Bitcoin and other cryptocurrencies imposed in 2014. The country aims to balance its economy while modernizing its payment systems. Bolivia has become the latest country in Latin America to take a pro-crypto stance, even though Bitcoin or other cryptocurrencies have yet to be recognized as legal tender in the region. The central bank will also allow banks to conduct crypto transactions, a restriction implemented in 2020.
Bolivia’s New Position on Cryptocurrency and Crypto Transactions
In a statement released on Wednesday, Banco Central de Bolilvia announced that it was lifting the ban on cryptocurrency payments in the country, including Bitcoin transactions. The decision was made in collaboration with the Financial System Supervisory Authority (Autoridad de Supervisión del Sistema Financiero) and the Financial Investigation Unit (Unidad de Investigaciones Financieras).
Second StatesmanBolivia’s national debt is expected to increase by $21.2 billion (approximately Rs 1,76,746 crore) between 2024 and 2029.
Bolivia’s central bank has decided to allow banks to use approved electronic channels and facilitate cryptocurrency payments. While Bolivia’s central bank has yet to recognize Bitcoin or other cryptocurrencies as legal tender, allowing these transactions could bring the country more remittances since cross-border crypto transactions are instant and generally free.
In addition, Bolivia has taken measures to reduce its dependence on the US dollar, especially after the consecutive interest rate increases in recent months announced by the US Fed to address the post-pandemic economic crisis. As of July 2023, Bolivia from what is said challenged the dominance of the US dollar by focusing attention on the Chinese yuan and the Russian ruble.
Other Latin American Countries Double Down on Cryptocurrency Investments
El Salvador became the first in the world to legalize Bitcoin as a legitimate currency in September 2021. Salvadoran President Nayib Bukele is continuing efforts to convert the country into a completely pro-BTC region, full of cryptocurrency-related companies that want to set up shop in Brazil is another country that has taken measures in favor of cryptocurrencies in recent years.