Bolivia calls crypto ‘reliable alternative’ to fiat in El Salvador partnership

Bolivia’s apical slope called crypto a “viable and reliable alternative” to fiat currencies portion signing a memorandum of knowing with El Salvador to accelerate crypto adoption.

The agreement, which volition spot the 2 countries collaborate connected argumentation improvement and stock crypto quality tools, aims to modernize Bolivia’s fiscal strategy and amended fiscal inclusion for families and tiny entrepreneurs, the Central Bank of Bolivia said successful a missive connected Wednesday.

Bolivia’s concern with El Salvador is notable arsenic El Salvador was the archetypal state to marque Bitcoin (BTC) ineligible tender, and could supply invaluable insights into imaginable economical oregon regulatory challenges that Bolivia whitethorn face.

The statement — signed by Central Bank of Bolivia Acting President Edwin Rojas Ulo and the National Commission of Digital Assets (CNAD) of El Salvador President Juan Carlos Reyes García — takes effect instantly and for an indefinite duration. 

Source: Central Bank of Bolivia 

It adds important momentum to Bolivia’s pro-crypto pivot, which began successful June 2024 erstwhile Bolivia lifted its long-standing crypto ban and allowed banks to process Bitcoin and stablecoin transactions.

Bolivians are warming to crypto

Three months aft lifting the crypto ban, Bolivia’s cardinal slope reported crypto trading measurement reaching $46.8 cardinal — averaging $15.6 cardinal per period — doubling the monthly average of the erstwhile 18 months.

This momentum has carried into 2025, with full crypto measurement reaching $294 cardinal arsenic of June 30, the Central Bank of Bolivia said successful its letter. 

Bolivia is turning to crypto amid its currency crisis

This March, Bolivian state-owned lipid and state steadfast Yacimientos Petrolíferos Fiscales Bolivianos received authorities support to start accepting crypto for substance imports arsenic a solution to the country’s deepening US dollar shortages and import challenges.

Related: Big brands are sleepwalking erstwhile it comes to stablecoins

Bolivia’s overseas speech reserves have fallen a staggering 98% from $12.7 cardinal successful July 2014 to $165 cardinal this April, Trading Economics information shows. 

Some Bolivian shops person adjacent begun pricing basal items successful the Tether (USDT) stablecoin, signaling an expanding displacement toward crypto to navigate the currency crisis. 

Source: Paolo Ardoino

The Bolivian boliviano remains the astir utilized currency successful Bolivia; however, fears implicit it losing purchasing powerfulness person led galore to similar much unchangeable alternatives similar the US dollar, oregon successful immoderate cases, crypto.

Bolivia’s aboriginal volition beryllium decided by October

The statement comes up of Bolivia’s high-stakes wide predetermination connected Aug. 17, wherever galore anticipation to spot an extremity to the existent socialist regime, which has been successful powerfulness since 2005.

If nary campaigner secures implicit 50% of the ballot — oregon astatine slightest 40% with a 10-point pb implicit the second-place contender — a runoff volition beryllium held connected Oct. 19.

The crypto predictions level Polymarket gives conscionable a 5% likelihood that a campaigner volition triumph outright successful Bolivia’s first-round election.

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