6 months ago bitcoin was banned in Bolivia, how has it gone now?

On June 26, there was a historic change in the regulation of bitcoin (BTC) and other cryptocurrencies in Bolivia. After 10 years of upholding the ban on using bitcoin (BTC) and other cryptocurrencies, the government opens the country’s financial system to the digital asset.

Six months have passed since this decision was made and many things have changed in the South American country.

As reported by NoticiasVE, the same Central Bank of Bolivia reported that in recent months it was registered an increase of more than 100% in purchase and sale operations of virtual assets in the country. This, through electronic payment channels and instruments that allow transactions with cryptocurrencies.

By the month of October, the volume of transactions had gone from USD 13.7 million to USD 23.7 million. In just four months more than 75 million dollars were moved.

According to data from this institution, approximately Some 252,801 people own cryptocurrencies in Boliviawhich represents 6% of the population with formal income.

“This is data collected from the formal sector – exchanges carried out on exchanges like Binance – that do not fully reflect what happens in reality in a country where 80% of economic activity is informal,” says columnist Luis Rivas Salazar, co-founder of the Bitcoin Bolivia Community.

This is because Bolivians “are still fearful and timid, and are buying and selling crypto assets in a camouflaged and undeclared manner,” says the bitcoiner.

Rivas agrees with the idea that adoption has grown substantially in the country and that Bolivians are flocking to bitcoin, after the lifting of the ban. This, due to the crisis generated by the shortage of dollars.

The exchange is done through “personal treatment” and not only to buy inputs and merchandise from suppliers abroad due to lack of US dollars. Savers are also looking for alternative refuges of value that allow them to protect assets, savings and capital from devaluation and inflation in a context of economic crisis.

Luis Rivas Salazar, founder of Comunidad Bitcoin Bolivia.

Official support for Bitcoin grows

And although the growth in adoption is one of the most important repercussions of the Resolution of the Central Bank of Bolivia that enabled the use of bitcoin, the support that the government has continued to give to the use of cryptoactives has been one of the most notable events. Especially after the opposite position he maintained for years.

With government support, Banco Bisa—the fourth largest bank in Bolivia—announced the incorporation of cryptocurrency services, specifically with USDT, Tether’s stablecoin. This service will allow Bolivians to buy, sell and transfer stablecoins.

The new service offers customers the possibility of holding funds in USDT as long as they want, make payments abroad and even send money to family members studying abroad.

Yvette Espinoza of Bolivia’s Financial System Supervision Authority (ASFI) supported the bank’s offer, saying it allows clients to carry out transactions within the country’s regulatory framework.

The opening of the government has meant that official institutions have been responsible for training people in the management of cryptocurrencies. Now even the bill for the General State Budget (PGE) for 2025 authorize the use of cryptocurrencies for transactions.

«Companies and public entities are empowered to carry out commercial activities, obtain virtual assets and transfer to fulfill their contractual obligations contracted in foreign currency; for which purpose, the Ministry of Economy and Public Finance will issue the corresponding regulations,” says article 7 of the national budget bill.

They seek to reactivate the economy with USDT

At the beginning of December, an initiative presented to the Senate became known in order to recognize USDT as a valid benchmark in the indexing of civil and commercial contracts. Measure that would allow linking the value of the local currency (the Bolivian) with that of USDT.

The bill was prepared in collaboration with the Law Firm Wayar & Von Borries Abogados and was presented by lawyers Iver Von Borries and Javier Romero Mendizábal. It proposes a modification of Law 2434 to legally recognize the stablecoin as a way to provide greater financial certaintyboth to companies and individuals.

Regarding the project, Romero highlighted the need to have mechanisms that guarantee balance and legal security in contractual relationships. In that sense, Von Borries explained that the lack of recognition of the parallel exchange rate generated a paralysis of projects, whose value exceeds 5,000 million bolivianos.

Given this situation, the incorporation of USDT, as a reference in contracts, seeks to offer an effective solution, capable of unlocking these investments and reactivate key sectors of the economy.

Progress in the creation of the legal framework

Although Bolivia has softened its stance on cryptocurrencies, the country still has to implement a legal framework for transactions. With this objective, bills have been introduced in Congress, one of them promoted by representative Mariela Baldivieso.

The intention to approve a new regulation is supported by the government, which has already raised its intention to create an exchange registry. The goal is to monitor the operation of these platforms.

To this end, the Financial Investigations Unit (UIF) presented Administrative Resolution No. UIF/58/2024 at the beginning of December, which provided recording cryptocurrency activities for suppliers.

Natural persons or companies (legal entities) that carry out for themselves or on behalf of other operations such as service providers and operations with cryptocurrencies, had to register and suspicious operations had to be reported to that regulatory body. However, the resolution it was ineffective weeks later.

As Representative Baldivieso denounced, the resolution generated many doubts and she stated this in a statement.

The representative predicts that adoption will continue to grow in Bolivia and assures that the country continues to advance towards the creation of a flexible legal framework, while taking advantage of the openness shown by government entities and which they hope will continue in the next government.