After a 4year ban Bolivia reopens doors to cryptocurrency trading
Here’s a rewritten version of the article:
**Key Developments in Bolivia’s Cryptocurrency Policy**
Bolivia has formally lifted its ban on Bitcoin and other cryptocurrencies after four years, marking a significant policy shift by the Central Bank of Bolivia (BCB). Initially imposed in 2020, the ban has been overturned to modernize the financial system and recognize the escalating role of digital currencies in global finance.
Financial institutions in Bolivia are now permitted to conduct cryptocurrency transactions through approved electronic channels. This decision brings Bolivia in line with neighboring Argentina’s more permissive approach to digital assets, effectively ending a ban that had been in effect since 2014.
The BCB, in collaboration with the Financial System Supervision Authority (ASFI) and the Financial Investigations Unit (UIF), issued Board Resolution 084/2024 to facilitate the use of Virtual Assets, aiming to modernize payment systems.
Despite these changes, cryptocurrencies are not classified as legal tender in Bolivia. The country continues to uphold the Boliviano as its sole official currency, allowing businesses the discretion to accept digital currencies while emphasizing the importance of understanding associated risks for users.
In a proactive move, Bolivia has launched an educational initiative under its Economic and Financial Education Plan to educate citizens about the risks associated with cryptocurrency trading. This effort, spearheaded by the BCB, seeks to promote safe handling of digital assets amidst evolving global financial practices and international money transfers.
The regulatory adjustments align with recommendations from the Latin American Financial Action Task Force (GAFILAT), advocating for updated cryptocurrency regulations across the region.
Following Bolivia’s regulatory reversal, Bitcoin experienced a modest 1.7% increase in value, climbing from $60,580 to $62,333. Presently, Bitcoin is trading at $61,672 with a market capitalization of $1.2 trillion.
This policy shift underscores Bolivia’s commitment to adapting to digital financial innovations while maintaining regulatory oversight in alignment with global trends.