Bolivia allows cryptocurrency transactions through banks and lifts the ban on Bitcoin.
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- 09 Jul 2024
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Bolivia's national bank, Banco Focal de Bolivia, has lifted its restriction on Bitcoin and crypto installments, permitting monetary elements to manage exchanges with computerized resources in a bid to modernize its installment framework.
According to the central bank, the move was made to help Bolivia improve its struggling economy and bring it into line with crypto regulations in Latin America.
The adjustment of administrative position denotes the finish of a restriction on crypto use in the country that started in 2014. The public authority restricted financial substances from connecting with cryptographic forms of money in December 2020 under Board Goal N°144/2020.
The recently approved regulations enable banks to transact in cryptocurrencies via approved electronic channels, allowing Bolivia to join the pro-crypto Latin American league. The central bank, on the other hand, made it clear that cryptocurrencies are not accepted as legal tender.
As a result, despite the fact that crypto assets can be traded in Bolivian banks, the government does not consider them to be legal tender and does not require businesses to accept them as payment.
The Economic and Financial Education Plan of Banco Central de Bolivia also calls for the development of a public education campaign. The goal of this plan is to educate the general public about the potential dangers of cryptocurrencies and the responsible management of them.
The Financial Investigations Unit, the Financial System Supervisory Authority, and the central bank worked together to introduce the new legislation. The regulatory update was created by the three government agencies and went into effect on June 26.
Additionally, the new law brings Bolivia's crypto regulation into line with the recommendations made by the Latin American Financial Action Task Force. As a result, Bolivia becomes yet another nation in Latin America to adopt crypto as a means of boosting its economy.
Latin America is favorable to Bitcoin
Throughout the course of recent years, a few Latin American countries have been battling with a faltering economy and rising expansion, constraining them to search for elective monetary arrangements. One of the most widely adopted new economic models is bitcoin and the use of cryptocurrencies.
El Salvador was the primary country in Latin America and the main country on the planet to embrace Bitcoin as legitimate delicate alongside the US dollar in 2021.
Although cryptocurrency is not recognized as legal tender, it is accepted for value transfers and payments in Mexico. Additionally, cryptocurrency sales on centralized exchanges are subject to Mexico's income tax.
