Banco Central de Bolivia (Central Bank of Bolivia) has suspended its ban on Bitcoin and cryptocurrency transactions in Bolivia, thus permitting virtual asset trading in all financial institutions in the country.
The Central Bank, in conjunction with the Financial System Supervisory Authority and the Financial Investigations Unit, initiated the legislation to lift the ban and passed it into law on June 26, 2024.
🚨BREAKING🚨
— Ash Crypto (@Ashcryptoreal) June 28, 2024
BOLIVIA HAVE UNBANNED BITCOIN
AND CRYPTO PAYMENTS, OFFICIALLY
MAKING IT LEGAL AGAIN FOR ALL
THE FINANCIAL ENTITIES.
BULLISH 🔥 pic.twitter.com/dtyKlECIlD
Bitcoin Ban Reversal Aims To Revive The Nation’s Economy
The latest decision by the Bolivian central bank aims to improve its systems to meet contemporary standards while reviving the country's dwindling economy. Also, it puts the Bolivian virtual asset regulatory model on par with other Latin American countries.
Since the last decade, many countries in Latin America have been dealing with worsening inflation that resulted in plummeting economic conditions. Consequently, leveraging Bitcoin and other cryptocurrencies has emerged as a new tool these nations adopt to revamp their economies. Hence, more of these countries have become “pro-Bitcoin,” with Bolivia being the most recent.
For context, cryptocurrency use began facing strict restrictions in the South American nation in 2014, implying that the recent ban reversal makes it almost ten years of running Bolivia’s economy without crypto assets.
Cryptocurrencies Are Not Legal Tender In Bolivia
While banks and other monetary bodies, following the latest ban reversal, can transact crypto assets via approved channels, the Central Bank still maintains that they are not legal tender.
Following the new regulations, the Bolivian government plans to organize several awareness campaigns to educate its citizens on the use of cryptocurrency. These programs will inform Bolivians about the risks of crypto trading and how to protect their crypto assets from scammers.
It is left to see how future events unfold. Whether the decision by the Bolivian government was the best to salvage its nation's economy remains a possibility until proven otherwise.
