In a significant move signaling deeper integration of digital assets into traditional finance, Bolivia continues to strengthen its position in the cryptocurrency landscape. Banco Bisa, one of the country’s leading financial institutions, has launched a custody service for Tether’s USDt stablecoin, marking a pivotal step in the nation's evolving approach to blockchain technology and digital payments.
This development underscores Bolivia’s dramatic shift from its once-strict crypto ban to becoming an emerging player in Latin America’s growing digital economy.
A Strategic Shift in National Crypto Policy
Back in 2014, Bolivia took a hardline stance against cryptocurrencies, explicitly banning all forms of decentralized digital money — including Bitcoin (BTC) — that were not issued or regulated by the government. The Central Bank at the time justified the prohibition by citing risks to national monetary sovereignty and consumer protection, warning citizens about potential financial losses due to unregulated and volatile assets.
For nearly a decade, this ban remained in place, positioning Bolivia as one of the few countries in the region with a complete crypto prohibition.
However, in 2024, the country began reversing course. On June 28, 2024, Bolivia officially lifted its ban on Bitcoin and other cryptocurrencies, permitting financial institutions to facilitate digital asset transactions under a regulated framework. This policy shift was driven by the need to modernize the economy, improve cross-border payment efficiency, and align with broader regional trends across Latin America, where nations like Brazil, Argentina, and Colombia have embraced blockchain innovation.
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Banco Bisa Leads with USDt Custody Service
At the forefront of this transformation is Banco Bisa, which has become the first Bolivian bank to offer custody services for USDt, the world’s most widely used stablecoin. The service enables users to securely hold, buy, sell, and transfer USDt — all within a regulated banking environment.
According to Franco Ugarte, Commercial Vice President at Banco Bisa, customers will undergo a strict verification process designed to ensure compliance with anti-money laundering (AML) standards and safeguard transaction integrity. This identity verification adds a layer of trust and security, addressing one of the primary concerns associated with crypto adoption: fraud and illicit activity.
The introduction of USDt custody is particularly strategic. As a dollar-pegged stablecoin, USDt offers price stability compared to volatile cryptocurrencies like Bitcoin or Ethereum. This makes it ideal for everyday use — especially for remittances, international trade, and value preservation in economies prone to inflation.
Enhancing Financial Inclusion and Cross-Border Payments
One of the most immediate benefits of the new service is its potential to streamline cross-border payments and support financial inclusion. Many Bolivians rely on remittances from family members working abroad, particularly in countries like Argentina, Spain, and the United States. Traditional remittance channels often involve high fees and long processing times.
With USDt, users can now send money across borders quickly and at significantly lower costs. Funds can be transferred directly from one digital wallet to another, bypassing intermediaries such as Western Union or MoneyGram. This not only reduces transaction costs but also increases accessibility for unbanked or underbanked populations.
Yvette Espinoza, representative of Bolivia’s financial regulator Autoridad de Supervisión del Sistema Financiero (ASFI), welcomed Banco Bisa’s initiative. She emphasized that the service operates within the country’s updated regulatory framework, allowing citizens to engage in crypto transactions while minimizing risks associated with unregulated platforms.
“This service allows clients to operate within a supervised financial system, reducing exposure to insecure or fraudulent crypto exchanges,” Espinoza stated.
Rapid Growth in Crypto Activity Post-Legalization
Since lifting the crypto ban, Bolivia has seen explosive growth in digital asset activity. According to a report released by the Central Bank on September 27, 2024, virtual asset transactions surged by 100% compared to pre-legalization levels.
Between July and September 2024 alone, monthly average crypto transaction volumes reached $15.6 million, reflecting strong public interest and increasing institutional participation.
This surge highlights a growing demand for accessible and reliable crypto infrastructure — demand that Banco Bisa’s USDt custody service is well-positioned to meet.
Core Keywords Driving Adoption:
- Bolivia cryptocurrency adoption
- USDt stablecoin
- Banco Bisa
- Crypto custody service
- Cross-border payments
- Latin America crypto regulation
- Bitcoin legalization
- Digital finance innovation
These keywords reflect both local developments and broader regional trends shaping the future of money in South America.
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Regulatory Gaps Remain Despite Progress
Despite these advancements, challenges remain. Notably, Bolivia has yet to establish a formal taxation framework for cryptocurrency transactions. While financial institutions can now legally offer crypto services, there is still no clear guidance on how capital gains, income from trading, or business revenues in digital assets will be taxed.
This regulatory gap could create uncertainty for investors and businesses looking to fully integrate crypto into their operations. Experts suggest that introducing clear tax policies would further legitimize the sector and encourage responsible innovation.
Moreover, public education about digital asset risks — such as phishing scams, wallet security, and market volatility — remains limited. As adoption grows, so too does the need for consumer protection initiatives and financial literacy programs focused on blockchain technology.
Frequently Asked Questions (FAQ)
Q: Is cryptocurrency legal in Bolivia now?
A: Yes. As of June 28, 2024, Bolivia lifted its decade-long ban on Bitcoin and other cryptocurrencies, allowing regulated financial institutions to offer digital asset services.
Q: What is USDt and why is it important?
A: USDt (Tether) is a stablecoin pegged 1:1 to the US dollar. It provides stability in the volatile crypto market and is widely used for trading, remittances, and storing value.
Q: Can anyone use Banco Bisa’s USDt custody service?
A: The service is available to verified customers who complete Banco Bisa’s identity verification process to ensure compliance with financial regulations.
Q: Are crypto transactions taxed in Bolivia?
A: Currently, there is no official taxation framework for cryptocurrency in Bolivia. The government has not yet released guidelines on how digital asset gains will be treated for tax purposes.
Q: How does this affect remittances to Bolivia?
A: The use of USDt can make international money transfers faster and cheaper, offering a viable alternative to traditional remittance services with lower fees and near-instant settlement.
Q: Is Banco Bisa the first bank in Bolivia to offer crypto services?
A: Yes. Banco Bisa is the first financial institution in the country to launch a regulated custody solution for a major stablecoin like USDt.
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Looking Ahead: Bolivia’s Digital Finance Future
Bolivia’s journey from outright crypto prohibition to regulated adoption reflects a broader trend across emerging markets: the recognition that blockchain technology and digital currencies are not just speculative tools but essential components of modern financial systems.
With Banco Bisa leading the charge and transaction volumes doubling post-liberalization, Bolivia is laying the groundwork for a more inclusive, efficient, and innovative economy. The next critical steps — implementing tax clarity, expanding user education, and potentially exploring central bank digital currency (CBDC) research — could solidify its role as a forward-thinking player in Latin America’s digital finance revolution.
As neighboring countries continue advancing their own crypto frameworks, Bolivia’s measured but decisive progress suggests that sustainable adoption is not only possible — it’s already underway.