Cryptocurrency Regulation in Bolivia

Bolivia’s cryptocurrency regulation has evolved dramatically over the past decade, moving from a strict ban to a cautiously regulated environment.

In 2014, Bolivia imposed one of the world’s strictest bans on cryptocurrencies, with the Central Bank of Bolivia (BCB) prohibiting the use of any digital assets not issued by the government. The ban aimed to protect the national currency, the Boliviano, from depreciation, prevent illicit activities like money laundering, and maintain monetary policy control.

Despite these restrictions, public interest in cryptocurrencies persisted. The ban was reinforced in 2020 and 2022, with explicit prohibitions on financial institutions facilitating crypto transactions. However, regional trends in Latin America, where countries like Argentina, Brazil, and El Salvador began integrating cryptocurrencies into their financial systems, along with economic pressures such as foreign currency shortages and inflation, prompted Bolivia to reconsider its stance.

The turning point came in June 2024, when the BCB repealed the ban through Board Resolution N°082/2024. This regulatory shift allowed cryptocurrency transactions through authorized electronic payment instruments (EPI) under government oversight.

The new framework introduced consumer protection measures and aligned Bolivia with regional regulatory bodies like the Latin American Financial Action Task Force to monitor virtual asset service providers and prevent illicit activities. Banks began offering custody services for stablecoins such as Tether (USDT), marking a cautious embrace of digital assets.

The government acknowledged digital assets as alternative means for international trade, with state energy firms initially planning to use cryptocurrencies for fuel imports, reflecting a move toward financial modernization.

However, in May 2025, the government reversed this specific application by banning crypto payments for energy transactions through Executive Order 5399. This decision aimed to stabilize the Boliviano amid economic challenges, including a scarcity of U.S. dollars and volatility concerns in the digital asset market. The ban on crypto payments for energy imports was intended to prevent capital flight and maintain currency stability, highlighting the government's cautious approach to integrating cryptocurrencies while prioritizing national economic stability.

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