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A year after lifting its ban on cryptocurrency, Bolivia has partnered with L -Salavador to carry forward its digital asset policy and infrastructure. Is Bolivia going to all crypto?
Summary
- Bolivia indicated the MoU with Al Salvador to cooperate on the crypto policy and blockchain regulation.
- Bolivian Central Bank describes digital assets as a viable and relative alternative to traditional currencies.
- Locals have already started using cryptocurrency like bitcoin and USDT.
Bolivia, a country struggling with economic instability, and Al Salvador, one of the first nation adopted as a legal tender, has joined hands to promote crypto as an alternative to traditional currencies.
For a letter published by the Central Bank of Bolivia (BCB), the two countries have signed a Monondom of Understanding (MoU) to facilitate mutual cooperation in the Executive of Crypto Policy Development, Regulatory Strategy, and Blockchain Intelligence Tools.
The agreement is immediately effective and is valid indefinitely.
What does Bolivia expect from partnering with Al Salvador?
Bolivia saw Al Salvador’s early entry into the crypto space as a model. In 2021, by obtaining the first nation to recognize bitcoin as a legal tender, Al Salvador received both praise and investigation.
The Central Bank of Bolivia now expects to learn from experience, especially effective crypto regulation, managing risks and integrating blockchain into its financial infrastructure.
For the official letter of BCB, the goal is to promote “safe and regulated” digital asset ecosystems that can attract investment and create new economic opportunities. The Central Bank stated that it sees cryptocurrency as a viable and relative alternative to traditional currencies, especially for families and SMAL Entertainers.
In particular, the CNAD, the regulatory body overseeing the crypto region in Al Salvador, will help Bolivia to understand the operations associated with digital assets and regulatory challenges.
Al Salvador’s experience as the first country to adopt bitcoin keeps it as a strategic partner for Bolivia, which is in the early stages of its national crypto framework.
Why is Bolivia following it now?
Time is not a coincidence. Agreement comes justice
Since then, Crypto trading volume has increased. For official figures, Bolivia recorded $ 294 million in the Crypto transactions by mid -2012, which was above $ 46.8 million in the months after the ban.
The economic difficulty of the years has already posted several dialects to find alternatives. The country’s foreign exchange reserves have fallen nearly 98% in the last decade, which has been $ 12.7 billion in 2014 to just $ 165 million in April 2025.
The national currency, boliviano, remains in use, but its purchase has disappeared to a great extent. On the black market, it trades on steep discounts, and other depreciation and others have pushed many people to look for a stability such as the US Dollar or Dollar-Paiged Cryptocurrency.
Bolivians are actively using cryptocurrency
Small businesses, including restaurants, barber shops and beauty salons, now accept payment in bitcoin and USDT. In many urban centers, this reported.
In a statement this year, Tedhar CEO Paolo Erdoino described shifts at this ground level as “quietly revolutionary” development while shaving the images of shopping in Bolivia, which pricing their goods in use.
Former Central Bank Chairman Jose Gabriel Espinoza, the KOP, reached $ 600,000 in the daily USDT transaction volume 2025, which was faster over the years. While it remains a fracture of the overall economy, the adoption rate is increasing rapidly.
As previously reported by Crypto.news, Bolivian Banking Gian Banko Bisa, meanwhile, led local media, said in March that Bolivia’s state-down oil and gas firm, YPFB, confirmed the plan to start using cryptocurrency for fuel imports.
