Bolivia is making significant strides in adopting cryptocurrency as a "viable and reliable alternative" to traditional fiat currencies. This move is highlighted by a recent agreement between the Central Bank of Bolivia and El Salvador's National Commission of Digital Assets (CNAD) to collaborate on crypto policy development and share intelligence tools. This partnership aims to modernize Bolivia's financial system and boost financial inclusion for its citizens.
The collaboration with El Salvador is particularly noteworthy, given El Salvador's pioneering role as the first country to make Bitcoin legal tender. This provides Bolivia with a valuable opportunity to learn from El Salvador's experience and navigate potential economic and regulatory hurdles.
This pro-crypto shift for Bolivia began in June 2024 when the country lifted its long-standing crypto ban, allowing banks to process Bitcoin and stablecoin transactions. Since then, Bolivians have shown increasing interest in digital assets. Just three months after the ban was lifted, crypto trading volume surged to $46.8 million, with monthly averages doubling compared to the previous 18 months. This momentum has continued into 2025, with total crypto volume reaching $294 million by June 30.
Bolivia's embrace of crypto comes amidst a deepening currency crisis and a severe shortage of US dollars. The state-owned oil and gas firm, Yacimientos Petrolíferos Fiscales Bolivianos, even received approval in March to accept crypto for fuel imports to address these challenges. The country's foreign exchange reserves have plummeted by a staggering 98% since 2014, falling from $12.7 billion to $165 million as of April. This has led some Bolivian shops to even price basic items in Tether (USDT), indicating a growing reliance on crypto to navigate the economic instability. While the Bolivian boliviano remains the primary currency, concerns about its dwindling purchasing power are driving many to seek more stable alternatives, including the US dollar and, increasingly, cryptocurrencies.
This significant agreement also comes ahead of Bolivia's general election on August 17, with a potential runoff on October 19. The outcome of the election could influence the future direction of Bolivia's pro-crypto policies.
July 2025, Cryptoniteuae