Bolivia Lifts Ban on Cryptocurrencies, Aims to Modernize Payment Systems
- The Central Bank of Bolivia has lifted its ban on Bitcoin and other cryptocurrencies, allowing financial institutions to integrate digital assets into the country's payment system.
- However, BCB emphasizes that they are not legal tender like the Boliviano, and it plans to include cryptocurrency safety tips in its Economic and Financial Education Plan.
On June 26, the Central Bank of Bolivia (BCB) announced that it has removed its ban on Bitcoin and other cryptocurrencies, permitting financial institutions to use digital assets to modernize its payment system. The bank stated this decision aims to boost Bolivia's economy and bring it in line with crypto regulations in Latin America.
El BCB, en coordinación con la ASFI y la UIF, a fin de modernizar el sistema de pagos, emite la Resolución de Directorio 084/2024, respecto al uso de los Activos Virtuales.
— Banco Central de Bolivia (@BancoCentralBO) June 26, 2024
Lee la nota completa: https://t.co/37Zpgg0V62#UnPaísUnidoEsUnPaísFuerte #ElBCBGarantíaDeLaEstabilidad pic.twitter.com/PX1uai8BeY
Although the BCB has given cryptocurrencies some regulatory leeway, it has clarified that cryptocurrencies are not considered legal tender like the "Boliviano." Businesses are not required to accept them, and users should be aware of the risks.
To help manage these risks, the BCB intends to incorporate cryptocurrency safety tips into its Economic and Financial Education Plan.
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The shift in regulatory policy ends a prohibition on cryptocurrency use that started in 2014 when the BCB banned all currencies not issued or regulated by the government, specifically mentioning Bitcoin, Quark, Peercoin, Namecoin, Primecoin, and Feathercoin. Then in 2020, the government banned banks from dealing with cryptocurrencies under Board Resolution N°144/2020.
Now, this reversal of the 2020 prohibition is being coordinated with the Financial System Supervision Authority (ASFI) and the Financial Investigations Unit (UIF).
Edited by Harshajit Sarmah
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