Bolivia lifts ban on cryptocurrency transactions for banks: details of the new regulation.
On June 26, the Central Bank of Bolivia (BCB) announced the official revocation of the ban on cryptocurrency transactions for banks. The new regulation allows banks to conduct transactions using bitcoin and other cryptocurrencies.
The law is the result of a collaboration between the BCB, the Financial System Supervisory Authority (ASFI), and the Financial Investigation Unit (UIF).
Although cryptocurrency transactions are now allowed, the BCB has clarified that they are not considered legal tender in Bolivia. Therefore, there is no obligation for businesses to accept them as a method of payment.
In 2014, Bolivia had taken a stance against cryptocurrencies, with the Financial System Supervisory Authority issuing a resolution prohibiting their use, citing factors such as consumer protection and potential risks associated with money laundering.
In 2022, the BCB also banned the banking sector from using, trading, or conducting transactions with digital assets, emphasizing the need to protect citizens from risks, fraud, and scams, and to prevent economic losses.
