Bolivia has lifted a multi-year ban on banks’ work with cryptocurrency

What’s new? Bolivian authorities have lifted the ban on bitcoin and other cryptocurrencies, allowing banks to conduct transactions with digital assets. However, cryptocurrencies are still not considered legal tender and businesses are not allowed to accept them as payment. However, the central bank intends to inform the public about the risks associated with cryptocurrencies as part of its economic and financial education plan.

Material by Bloomberg

What else is known? On June 26, the Central Bank of Bolivia (BCB) announced that banks can conduct crypto transactions, thus repealing its Resolution No. 144/2020, which had been in effect since December 2020.

The changes are the result of the BCB’s collaboration with the Financial System Supervisory Authority (ASFI) and the Financial Investigations Unit (UIF). It will bring the country in line with the recommendations of the Latin American Financial Action Task Force (GAFILAT), which has been pushing for the adaptation of cryptocurrencies.

Cryptocurrency trading is now possible through authorized electronic channels, but the Central Bank reminded that cryptocurrencies are not considered legal tender and businesses are not obliged to accept them as payment.

In addition to lifting the ban, the Central Bank will include information about cryptocurrency risks in its economic and financial education program, which will tell citizens about safe ways to handle this type of asset.

ASFI issued a ruling back in 2014 banning the use of cryptocurrencies due to insufficient consumer protection and the risk of money laundering. In 2022, the Central Bank again banned banks from engaging in cryptocurrency activities to protect consumers from fraud and prevent potential economic losses.

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In April this year, the Central Bank of Fiji threatened citizens with criminal prosecution for investing in cryptocurrency and reminded them that it had not issued any licenses for such services.

In February, it became known that Nigeria is preparing to ban crypto exchanges in order to stabilize the national currency.