- The Central Bank of Bolivia allows cryptocurrency transactions after years of restrictions.
- While businesses can trade crypto, it’s not an official currency.
- Bolivia has taken the initiative to educate citizens about crypto risks.
Bolivia has officially lifted its ban on Bitcoin and alternative cryptocurrencies (altcoins). On June 26, 2024, the Central Bank of Bolivia (BCB) announced that financial institutions are now permitted to engage in cryptocurrency transactions. This regulatory change revokes Board Resolution N°144/2020, which had been in place since December 2020.
The decision to lift the ban comes after years of stringent regulations. In 2014, Bolivia’s Financial regulator issued a resolution prohibiting the use of crypto, citing concerns about consumer protection and the potential for money laundering.
Then, in 2022, the Bolivian central bank further restricted the banking sector from using, marketing, or transacting cryptocurrency assets. This restriction aimed to protect the public from risks, fraud, and swindles.
However, the recent change aligns Bolivia with the recommendations of the Latin American Financial Action Task Force (GAFILAT), which has been pushing for adaptations to crypto. While cryptocurrencies can now be traded through authorized electronic channels, they are not considered legal tender.
The Central Bank of Bolivia plans to incorporate information on the risks associated with cryptocurrencies into its Economic and Financial Education Plan. Amidst these challenges, Bolivia’s decision to lift the crypto ban reflects a shift in its approach to digital currencies.
Meanwhile, Bitcoin is showing signs of recovery after tumbling below $60,000 3 days ago. Currently, BTC is trading at $61,4900, having gained 1.40% in the past 24.
Bitcoin’s bearish trend in recent months can be attributed to various factors, including increased regulatory scrutiny, concerns over macroeconomic conditions like inflation and interest rate hikes, and significant sell-offs by major holders.
Additionally, negative sentiment driven by global economic uncertainties and technological challenges, such as scalability and energy consumption issues, have also contributed to its declining value.
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