Bolivia lifts ban on cryptocurrency transactions: What does this mean for the country?

The Central Bank of Bolivia (BCB) has decided to lift the ban on financial transactions with cryptocurrencies, paving the way for the country's banks to conduct transactions with virtual assets. This step, Cryptopolitan reports, was made as part of the repeal of Board of Directors Resolution No. 144/2020, which had been in force since December 2020.

The update to the regulation of cryptocurrency transactions follows the recommendations of the Financial Action Task Force on Money Laundering in Latin America (GAFILAT), which called on Bolivia to adapt to the challenges of the digital environment. In this regard, the BCB worked with the Financial Conduct Authority (ASFI) and the Financial Investigations Unit (UIF) to develop new rules.

Residents of Bolivia can now make cryptocurrency transfers through official payment channels, but be aware that virtual assets are still not legal tender in the country. The BCB has also included information on the risks associated with the use of cryptocurrencies in its Economic and Financial Education Plan, with the aim of increasing public awareness.

Bolivia's move underlines the global trend towards the legalization of cryptocurrencies in the Americas, where more than 20 countries have already taken measures to regulate digital assets. Until now, Bolivia has had a ban on the use of Bitcoin and other crypto-assets since 2014, and its lifting opens up new opportunities for economic growth and the development of the country's financial industry.