Bolivia Opens Doors to Crypto: Lifts Banking Ban for Digital Currency Payments

Earlier before, Bolivia has taken a cautious approach to cryptocurrencies, with a history of outright bans on digital currencies like Bitcoin. The government views them as speculative and potentially risky for financial stability. As of recent updates, Bolivia continues to maintain strict regulations against the use and trading of cryptocurrencies within its borders.

In 2014, Bolivia’s central bank implemented a banking ban on cryptocurrencies. This regulation prohibits financial institutions from conducting transactions involving digital currencies such as Bitcoin. The policy aims to mitigate risks associated with cryptocurrencies and protect Bolivia’s financial stability, according to their central bank.

In the latest development, Bolivia’s central bank decided to allow banks to use approved electronic channels for crypto payments, despite not recognizing Bitcoin and other cryptocurrencies as legal tender, is seen as a positive step towards crypto adoption. 

This move could potentially increase remittances due to the instant and low-cost nature of cross-border crypto transactions. Additionally, Bolivia’s efforts to reduce reliance on the US dollar by focusing on alternative currencies like the Chinese yuan and Russian ruble further indicates a shift towards diversification and openness to new financial technologies.

Bitcoin price 

The current trade price of Bitcoin (BTC) is $60,818 & this price is 1.5% down over the last 24 hours.

The trade price of Bitcoin has been struggling badly since the last 10 days. Notably, in the last 3 days the US BTC spot ETF market saw money inflow consecutively.

On June 27, Bitcoin spot ETFs saw a net inflow totaling $11.7997 million. Grayscale’s GBTC ETF had an outflow of $11.4407 million, while Bitwise’s BITB ETF saw an inflow of $8.0432 million, and Fidelity’s FBTC ETF had an inflow of $6.7194 million.

Read also: Second American Solana spot ETF application successfully files