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Bolivia Opens Doors to Cryptocurrency Trading After 4-Year Ban
After four years, Bolivia’s Central Bank has officially canceled its 2020 debt Bitcoin ban and other cryptocurrencies. This move, aimed at upgrading the financial system, recognizes the growing importance of digital currencies in the global financial ecosystem. By lifting the ban, Bolivia is acknowledging the growing relevance and potential impact of digital assets on the economy.
BCB Lifts Ban on Bitcoin
The Central Bank of Bolivia (BCB) has announced that financial institutions can now conduct cryptocurrency transactions through authorized electronic channels. This change aligns Bolivia with Argentina’s more relaxed stance on digital assets and ends the ban on the use of cryptocurrencies that began in 2014.
This 2020 lifting of the ban, coordinated with the Financial System Supervisory Authority (ASFI) and the Financial Investigations Unit (UIF), allows for greater freedom but continues to not recognize cryptocurrencies as legal tender.
The change is in line with suggestions from the Latin American Financial Action Task Force (GAFILAT), which advocates updating cryptocurrency regulations. The “Boliviano” remains the only official currency, so companies are not required to accept cryptocurrencies and users must be aware of the risks.
Bolivia raises awareness of cryptocurrency risks
Bolivia is taking steps to educate its citizens about the risks of cryptocurrency trading as part of its Economic and Financial Education Plan. This effort by the Central Bank of Bolivia (BCB) aims to ensure that people handle digital assets safely and understand the potential risks.
Bolivia’s move reflects its commitment to adapt to changes in digital finance and international money transfers, aligning itself with global trends toward cryptocurrency integration and adjusting regulations accordingly.
Despite the regulatory change, the price of Bitcoin increased by about 1.7%, from $60,580 to $62,333. Currently, Bitcoin is traded at $61,672 with a market capitalization of $1.2 trillion.