Banco Bisa, one of Bolivia’s largest banks, last week announced the launch of a crypto custody service, becoming the first regulated financial institution in the country to do so.
The service, which only supports stablecoin Tether (USDT), will allow customers to buy, sell and transfer cryptocurrencies directly through their bank accounts, local media reported on Thursday.
This is in response to the devaluation of currencies in Andean countries. Last month, the country’s inflation rate hit its highest in nearly a decade, increasing demand for the dollar.
Franco Urquidi, Banco Visa’s vice president for business, told local reporters at the time that the feature would allow people to send money to relatives abroad.
“Our customers have gone through a rigorous verification process, giving them peace of mind that their transactions will take place through safe and reliable channels,” Urquidi said in a rough translation of local media reports.
The service allows customers to store USDT indefinitely, transfer funds abroad, and facilitate payments for family members studying abroad.
USDT is the largest stablecoin by market capitalization and is the backbone of the crypto economy. This is mainly because it is very widely used by traders to enter and exit trades.
A stablecoin is a type of digital token that is pegged to a currency or commodity, typically the US dollar or gold.
It is unclear whether Banco Bisa’s services will be available for everyday transactions at local merchants. The bank did not respond to requests for comment.
In both cases, the service starts at 200 USDT, with a daily limit of 10,000 USDT, and rates range from 35 (US$5.07) to 100 Bolivianos ($14.48). According to reports, there will be a fee of 280 Bolivianos (US$40.55) for transfers to overseas US dollar accounts.
By Latin American standards, Bolivia is a quiet country when it comes to crypto adoption. Bitcoin miners haven’t focused on landlocked countries like Paraguay, and the asset class’s reception has been lukewarm compared to neighboring Brazil and Argentina.
The country also does not receive the same amount of cryptocurrencies as other countries in the region receive through remittances, Chainalysis found.
Edited by Sebastian Sinclair
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