Bolivia’s Central Bank has signed a memorandum of understanding (MOU) with El Salvador’s National Commission of Digital Assets (CNAD). The collaboration seeks to develop and regulate the use of digital assets in the country.
In the face of Bolivia’s economic challenges, the BCB also called cryptocurrencies a ‘viable and reliable alternative’ to traditional fiat currencies. This strategic move comes as Bolivia experiences a remarkable 630% surge in domestic cryptocurrency transactions. This signals growing adoption and interest in digital assets.
Bolivia Strengthens Crypto Ecosystem with El Salvador Partnership
In a press release dated July 30, Banco Central de Bolivia (BCB) revealed that the goal of this agreement is to leverage El Salvador’s expertise. The country has been a pioneer in the regulation and use of digital assets. It was the first nation to adopt Bitcoin as legal tender in 2021.
“Both entities also commit to promote the exchange of experiences and technical and regulatory knowledge on the subject, including the use of blockchain intelligence tools, risk analysis, etc., within the framework of their regulatory competencies,” the press release reads.
This partnership aims to help Bolivia develop a regulatory framework for cryptoassets, fostering safe and regulated ecosystems that will be attractive for investment. Juan Carlos Reyes García, the President of CNAD, and Edwin Rojas Ulo, the acting president of the BCB, signed the MoU.
“The agreement, which is effective from this date and for an indefinite period, consolidates the progress made in the use of digital assets as a viable and reliable alternative to traditional currencies, especially for families and small entrepreneurs,” the bank added.
The BCB also emphasized its commitment to developing policies that will modernize Bolivia’s financial system. These policies are designed to enhance financial inclusion, ensuring that more people have access to modern financial tools, including digital assets.
In addition to its focus on digital assets, the BCB remains focused on maintaining Bolivia’s economic and social stability. According to a Reuters report, the country is grappling with a severe economic crisis.
Bolivia’s dollar reserves are thin, inflation rates are at a 40-year high, and there are widespread fuel shortages. In fact, these economic challenges even led the country to lift its cryptocurrency ban in June 2024.
The step has fueled crypto adoption. Citizens and small businesses are increasingly turning to cryptocurrencies and stablecoins such as Tether (USDT) for stability. That’s why in the past year, Bolivia has seen a significant increase in virtual asset transactions.
On June 27, the BCB reported that the transactions grew from $46.5 million in the first half of 2024 to $294 million in the same period in 2025, totaling $430 million since the issuance of the crypto ban resolution in 2024.
This surge was primarily driven by individual users, who accounted for 86% of transactions. This trend highlights the growing reliance on digital assets as a store of value. It comes as the Bolivian boliviano (BOB) has lost nearly 50% of its value on the black market this year.
“The number of transactions in the financial system with virtual assets has increased by 12 times, reaching 10,193 transactions. This corresponds to transactions worth BOB 611 million as of May 31, 2025,” BCB noted.
Bolivia’s shift towards crypto adoption aligns with global trends. Countries such as Pakistan, South Korea, Singapore, and others are also exploring and expanding their digital asset ecosystems.
The post Bolivia Partners with El Salvador to Boost Crypto Adoption Amid 630% Growth appeared first on BeInCrypto.
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Kamina Bashir
https://beincrypto.com/bolivia-el-salvador-crypto-agreement/
2025-07-31 11:32:25
