Bolivia’s top banks called Crypto a “viable and reliable alternative” to fiat currencies, while signing a memorandum of understanding with El Salvador to accelerate the adoption of cryptocurrencies.
The agreement will enable the two countries to collaborate on policy making and share crypto-intelligence tools, aiming to modernize Bolivia’s financial system and improve financial inclusion for families and small entrepreneurs of Bolivia’s central bank. explain In a letter Wednesday.
Bolivia’s partnership with El Salvador is worth noting, as El Salvador is the first country to make Bitcoin (BTC) Statutory tenders can provide valuable insights into potential economic or regulatory challenges that Bolivia may face.
The agreement was signed by Acting Bolivian President Edwin Rojas Ulo and El Salvador President Juan Carlos Reyes García and took effect indefinitely.
It adds great momentum to the Pro-Crypto Pivot in Bolivia, which started in June 2024 with Bolivia (Bolivia) Long-standing crypto ban And allow banks to process Bitcoin and Stablecoin transactions.
Bolivians are warming to cryptocurrency
Three months after lifting the cryptocurrency ban, the Central Bank of Bolivia reported that cryptocurrency transactions reached $46.8 million – an average of $15.6 million per month – Double the monthly average In the past 18 months.
The central bank of Bolivia said in the letter that the momentum has shifted to 2025, with the total cryptocurrency volume reaching US$294 million as of June 30.
Bolivia turns to cryptocurrency amid its currency crisis
In March this year, Bolivian state-owned oil and gas company yacimientospetrolíferos fiscales bolivianos obtained government approval Begin accepting encryption To address the country’s solutions to deepen the dollar shortage and import challenges.
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Bolivia’s foreign exchange reserves have Depravity Trading economics data show that from $12.7 billion in July 2014 to $165 million in April this year, an astonishing 98%.
Some Bolivian stores even started Pricing basic items In the tether (USDT) Stablecoin, indicating an increasing shift towards the cryptocurrency crisis.
Bolivian Boliviano remains the most commonly used currency in Bolivia. But worry about losing purchasing power makes many prefer more stable alternatives Dollaror in some cases, cryptocurrencies.
Bolivia’s future will be decided by October
The deal comes ahead of the high-stakes election in Bolivia on August 17, with many hoping that the current socialist regime, which has been in power since 2005, would end.
If no candidate receives more than 50% of the vote (or at least 40% of the competitors, at least 40% of the votes will be held on October 19.
Crypto prediction platform gathers market give The candidate will win 5% odds in Bolivia’s first round of elections.
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