Bolivia’s leading bank called Crypto is a “viable and reliable alternative” to fiat currencies while signing a memorandum of understanding El Salvador to accelerate crypto adoption.
The Agreement, which will see the two countries working on policy development and share crypto intelligence tools, aims to modernize Says In a letter on Wednesday.
Bolivia’s cooperation with El Salvador is noticeable because El Salvador is the first country to make Bitcoin (Btc) legal soft, and may provide an important view of potential economic challenges or regulations that Bolivia may face.
The Agreement – Signed by Central Bank of Bolivia Acting President Edwin Rojas Head and the National Commission of Digital Assets (CNAD) by El Salvador President Juan Carlos Reyes García – has occurred immediately and for an uncertain duration.
It adds significant momentum to Bolivia’s pro-crypto pivot, which began in June 2024 when it was raised by Bolivia Long -term Crypto prohibition And allows banks to process Bitcoin and Stablecoin transactions.
Bolivians warmed up to crypto
Three months after the crypto ban, the Bolivia Central Bank reported a volume of crypto trading of up to $ 46.8 million -which saved $ 15.6 million per month – Duplication to the monthly average of the past 18 months.
This momentum brought to 2025, with a total volume of crypto reaching $ 294 million until June 30, the Central Bank of Bolivia said in its letter.
Bolivia returns to crypto in the middle of its currency crisis
This March, the Bolivian state owned by oil and gas firm Yacimientos Petrolíferos Fiscales Bolivianos has received government approval at Start receiving crypto For fuel imports as a solution to deepening US dollar deficiencies and importing challenges.
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Bolivia’s foreign exchange reserves have fell A fatigue of 98% from $ 12.7 billion in July 2014 to $ 165 million this April, trade economy data shows.
Some Bolivian shops have even begun Pricing major items to tether (USDT) Stablecoin, signed an increase of moving towards crypto to navigate the money crisis.
Bolivian Boliviano remains the most used currency in Bolivia; However, the fear of loss of power of purchase leads to many who prefer more stable alternatives such as US dollarsOr in some cases, crypto.
Bolivia’s future will decide in October
The agreement preceded the high stakes of Bolivia’s general election on August 17, where many hoped to find an end to the current socialist regime, which has been in power since 2005.
If no candidate gets more than 50% of the vote-or at least 40% with a 10-point lead in the second place contender-a runoff will be held on October 19.
The platform of crypto polymarket predictions Provides Only a 5% odds that a candidate will win directly in the first round of Bolivia election.
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