Bolivia's cryptocurrency transactions surged by more than 100% after legalizing payments

Bolivia has experienced a massive surge in crypto trading over the past three months, following new legislation that legalized the use of digital payment channels. According to a recent statement from the Central Bank of Bolivia, monthly virtual asset trading volumes in the country rose from $7.6 million to $15.6 million, driven primarily by stablecoin transactions and increased public interest. The Central Bank of Bolivia attributed the growth to Executive Board Resolution No. 082/2024, which came into effect in June and allows the use of electronic payment channels to purchase virtual assets. The number of virtual asset transactions also saw a significant increase, with more than 1.1 million transactions recorded from July to September, compared to about 932,000 in the first six months. Most of these transactions were conducted by individuals. In addition, the Superintendence of the Financial System (ASFI) reported that six financial institutions have begun conducting business with virtual assets, further integrating these digital tools into Bolivia’s financial system. Data showed that these institutions saw a 40% increase in business between July and August. To support this expansion, the country’s central bank launched an educational program to inform the public about the characteristics and risks of virtual assets. It held 33 workshops across the country with more than 3,000 participants. Governor Edwin Rojas Ulo stressed that the move is part of a broader strategy to modernize the economy and strengthen international business and financial activities. (Cryptonews) Earlier in late June, Bolivia had lifted its ban on Bitcoin and other cryptocurrencies. The ban came into effect in December 2020. On June 26, the Central Bank of Bolivia (BCB) officially announced that banks can now conduct cryptocurrency transactions. However, although cryptocurrencies can now be traded through authorized electronic channels, the Central Bank of Bolivia reminds citizens that cryptocurrencies are not considered legal tender.