A year after he lifted his ban on cryptocurrencies, Bolivia works together with El Salvador to promote his digital activity policy and infrastructure. Does Bolivia go all the way to crypto?
Summary
- Bolivia draws Mou with El Salvador to work together on crypto policy and blockchain regulation.
- The Bolivian central bank describes digital assets as a viable and reliable alternative to traditional currencies.
- The local population has already started using cryptocurrencies such as Bitcoin and USDT.
Bolivia, a country that struggles with economic instability, and El Salvador, one of the First Nations that Bitcoin takes on as a legal means of payment, have combined his hands to promote crypto as an alternative to traditional currencies.
By one letter Published by the Central Bank of Bolivia (BCB), the two countries have signed a memorandum of agreement (MOU) to facilitate mutual cooperation in the development of crypto policy, regulatory strategy and the exchange of blockchain inflatable tools.
The agreement is immediately in force and remains valid for an indefinite period.
What hopes to win Bolivia by working with El Salvador?
Bolivia sees the early access from El Salvador to the crypto space as a model that is worth studying. By becoming the first nation that Bitcoin recognizes in 2021 as a legal tender, El Salvador received both praise and control.
The Central Bank of Bolivia now hopes to learn from that experience, in particular in the development of effective crypto regulations, managing risks and integrating blockchain in its financial infrastructure.
According to the official letter from the BCB, the aim is to promote “safe and regulated” digital assets ecosystems that can attract investments and create new economic opportunities. The central bank said that the cryptocurrencies regards as a viable and reliable alternative to traditional currencies, especially for families and small entrepreneurs.
In particular, CNAD, the regulating authority that supervises the crypto sector in El Salvador, helps Bolivia to understand the operational and regulatory challenges related to digital assets.
The experience of El Salvador as the first country that Bitcoin accepts as a legal tender, it positions it as a strategic partner for Bolivia, who is still in the early stages of his national crypto framework.
Why does Bolivia follow this now?
The timing is no coincidence. The agreement comes only one year after Bolivia withdrew his long-term crypto ban in June 2024. That reversal opened the door for banks to process Bitcoin and Stablecoin transactions.
Crypto -Handelsvolumes have since risen. According to official data, Bolivia has registered $ 294 million in crypto transactions in mid-2025, an increase of $ 46.8 million in the months after the prohibition.
Years of economic hardships have already encouraged many Bolivians to look for alternatives. The strange currency reserves of the country have fallen nearly 98% over the past decade, from $ 12.7 billion in 2014 to just $ 165 million in April 2025.
The National Currency, the Boliviano, remains in use, but the purchasing power is considerably eroded. On the black market it has traded with steep discounts and the fear of further devaluation has pushed many to look for stability in the form of American dollars or dollar-pegetic cryptocurrencies such as Tether’s USDT.
Bolivians actively use cryptocurrencies
Small companies, including restaurants, hairdressing shops and beauty salons, now accept payments in Bitcoin and USDT. In many urban centers, it is reportedly not unusual to see menus or price tags directly in Stablecoins.
In a statement earlier this year, Tether CEO Paolo Ardoinino shifted these grassroots shifted as a “quiet revolutionary” development, while sharing images of stores in Bolivia praises their goods in USDT.
According to the former president of the Central Bank Jose Gabriel Espinoza, the daily USDT transaction volumes reached $ 600,000 in 2025, sharp from previous years. Although this remains a fraction of the overall economy, the adoption speed continues to grow rapidly.
As previously reported by crypto.news, Bolivian Banking Giant Banco Bisa has stood the way by launching a custody service for Tether’s USDT in October last year. In the meantime, the local media reported in March that the state file of Bolivia, YPFB, had confirmed the plans to start using cryptocurrency for fuel imports.
