Key Takeaways
- Bolivia lifts its ban on Bitcoin transactions.
- The regulation aligns with GAFILAT guidelines.
- Bitcoin is still not legal tender in Bolivia (yet).
Bolivia has officially lifted its ban on Bitcoin and other cryptocurrency transactions. As of June 26, the Central Bank of Bolivia (BCB) has revoked the 2020 ban, allowing financial entities to use authorized electronic means to operate with digital assets.
This regulatory shift was achieved through collaboration between the BCB, the Financial System Supervisory Authority (ASFI), and the Financial Investigations Unit (UIF). The updated regulation aligns with guidelines from the Latin American Financial Action Task Force (GAFILAT), which encourages member countries to adapt to digital financial environments.
Despite the legalization of cryptocurrency transactions, the BCB emphasizes that cryptocurrencies are not legal tender in Bolivia. Therefore, there is no obligation for businesses or individuals to accept them as a form of payment.
Additionally, the BCB plans to include information on the risks associated with cryptocurrencies in its Economic and Financial Education Plan. This initiative aims to educate the public on safely handling digital assets and understanding their potential risks.
The regulatory change brings Bolivia in line with neighboring countries like Argentina, which have also embraced the use of cryptocurrencies.
