Cryptocurrency adoption continues in the South American country of Bolivia, as a major bank has started offering custody services for Tether’s USDt stablecoin.
Bolivian bank Banco Bisa has announced a custody service for USDt (USDT), allowing customers to buy, sell, and send cryptocurrencies through the bank.
Banco Bisa said the service allows users to hold their assets, send money to relatives and make cross-border payments.
Bolivian financial regulator supports new services
Yvette Espinoza, head of Bolivia’s financial regulator, the Superintendent Financier (ASFI), supported the bank’s proposal, saying it would allow customers to carry out cryptocurrency transactions within the country’s regulatory framework. The regulator said this will reduce the risk of unsafe interactions in the virtual currency market.
Franco Urquidi, Banco Visa’s vice president for business, said in a statement that customers will go through a verification process to have “peace of mind” that their transactions are being carried out securely.
Bolivia banned cryptocurrencies in 2014
In 2014, Bolivia banned virtual currencies, banning currencies that are not issued or regulated by the Bolivian government.
At the time, the country made it clear that using Bitcoin (BTC) within the country was illegal. The central bank said this was to prevent the loss of currency and people’s funds due to uncontrolled currencies.
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Bolivia changes stance on crypto assets
However, Bolivia began to change its stance on crypto assets in 2024. On June 28, Bolivia lifted its ban on BTC and cryptocurrency payments, allowing financial institutions to trade in digital assets.
Central Bank of Bolivia’s Notice Regarding Virtual Currency Transactions. Source: Central Bank of Bolivia
Bolivia’s central bank said the move was made to improve its economy and align its rules with other Latin American crypto regulations.
On September 27, the country’s central bank reported a 100% increase in crypto asset transactions since lifting the ban on BTC and crypto payments. The bank reported that an average of $15.6 million in virtual currency was traded per month between July and September.
Although Bolivia has softened its stance on cryptocurrencies, a formal tax framework for crypto transactions has not yet been introduced.
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