Bolivia officially legalizes crypto payments for banks

Bolivia has lifted its ban on bitcoin and other cryptocurrencies, allowing banks to conduct transactions with digital assets.
Cryptocurrencies are still not considered legal tender, though, meaning businesses are not authorized to accept them as payment.
The Central Bank will educate the public on the risks of cryptocurrencies as part of its Economic and Financial Education Plan.

Bolivia has lifted the ban on Bitcoin and other cryptocurrencies. On June 26, the Central Bank of Bolivia (BCB) officially announced that banks can now conduct transactions with crypto. This regulatory change revokes Board Resolution N°144/2020, which had been in place since December 2020.

This regulatory adjustment results from a collaboration between the Central Bank of Bolivia, the Financial System Supervisory Authority (ASFI), and the Financial Investigations Unit (UIF).

The update aligns Bolivia with the recommendations of the Latin American Financial Action Task Force (GAFILAT), which has been pushing for adaptations to crypto.

Although cryptocurrencies can now be traded through authorized electronic channels, the Central Bank of Bolivia has reminded citizens that cryptocurrencies are not considered legal tender.

This means there is no obligation for businesses to accept them as payment. The BCB emphasized this point to ensure the public understands the limitations and legal status of cryptocurrencies in Bolivia.

In addition to lifting the ban, the BCB has announced plans to incorporate information on the risks associated with cryptocurrencies into its Economic and Financial Education Plan. This aims to educate the public on how to safely handle cryptocurrencies and understand the potential risks involved.