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Bolivia reverses 10-year ban: banks can now operate with Bitcoin
Bolivia has just made a 180-degree turn. The Central Bank has lifted the ban on cryptocurrencies that had been in place since 2014, allowing banks to handle transactions with Bitcoin and other digital assets starting June 26. Sounds good, but there’s an important catch.
What changes (and what DOESN’T)
Financial institutions can now facilitate buying and selling crypto through authorized electronic channels. So far, so good. But pay attention: Bolivia does not recognize Bitcoin as legal tender, only as an asset that can be traded. The boliviano (BOB) remains the only official currency. This means businesses are not required to accept crypto as payment, although technically they can.
In other words, Bolivia is opening the door, but carefully. The Central Bank will also launch a financial education plan so people understand the risks before getting into crypto.
The crypto wave in Latin America
Bolivia joins a broader regional trend:
Why now
Latin America is under economic pressure (chronic inflation, instability). Cryptocurrencies are seen as a way out. Bolivia is aligning with recommendations from the Latin American Financial Action Task Force and coordinating with local regulatory bodies.
The reality: it’s a strategic move to modernize the financial system and, at the same time, give people tools to protect themselves from the devaluation of the boliviano. The risk remains high for users, but at least now it’s legal.