Cryptocurrencies are now legal in Bolivia, after the Central Bank of Bolivia (BCB) announced the lifting of a four-year ban on the use of digital currencies in the country. The decision was made in collaboration with the Financial System Supervisory Authority (ASFI) and the Financial Investigations Unit (UIF), after a mutual evaluation of the Plurinational State of Bolivia in 2023-2024 by the Latin American Financial Action Task Force (GAFILAT).

The BCB has been working to modernize the country's payment system and infrastructure, and the new Board Resolution N°082/2024 allows financial entities to transact with crypto. The president of the BCB, Edwin Rojas Ulo, said that the new resolution will provide Bolivians with a new mechanism for financial activities and will contribute to the strengthening of financial and commercial activities.

The ASFI will control the Financial Intermediation Entities (EIF), including the means the entities provide to acquire crypto assets, and will offer financial education on virtual assets and their risks to the population. The UIF will oversee the preventive measures to identify possibly suspicious operations linked to the legitimization of illicit profits and financing of terrorism.

The BCB emphasized that the Boliviano remains the only legal tender in the country, and unlike El Salvador, which made Bitcoin a legal tender, BTC and other cryptocurrencies are not cash, and there is no obligation on the part of the population to receive them as a payment method.

The Central Bank will incorporate conceptual aspects and the risks of using crypto assets into its Economic and Financial Education Plan, aiming to promote greater knowledge to the population and allow Bolivians to make informed decisions when using virtual assets.

This decision is seen as a step towards broader crypto adoption in Latin America, where more countries are embracing cryptocurrencies and digital assets. The modernization of the payment system and the development of the payment infrastructure are expected to contribute to the growth of the crypto market in the region.

The lifting of the ban is also expected to increase the use of cryptocurrencies in Bolivia, as more people and businesses will have access to digital currencies. The country's financial system will become more inclusive, and the population will have more options for financial activities.

In conclusion, the lifting of the four-year ban on cryptocurrencies in Bolivia is a significant step towards the modernization of the country's payment system and the development of the payment infrastructure. It is expected to contribute to the growth of the crypto market in Latin America and increase the use of digital currencies in the country.