Originally published on: September 27, 2024
Subheading 1: Central Bank of Bolivia Reports 100% Increase in Monthly Virtual Asset Trading
Subheading 2: Stablecoin Transactions Dominate $48.6 Million Traded Over Three Months
In a significant turn of events, Bolivia’s central bank has announced a staggering 100% surge in virtual asset trading within the country following the lifting of the ban on Bitcoin in late June. The average monthly trading volume spiked to $15.6 million between July and September, marking a remarkable 105% increase compared to the previous 18 months.
Stablecoin transactions have emerged as the primary driving force behind the $48.6 million traded in the past three months, a figure that surpasses the total traded in the preceding six months combined. Banco Central de Bolivia (BCB) disclosed these findings in a recent report, highlighting the swift adaptation to the digital currency landscape post-ban removal.
The central bank’s decision to revoke the 42-month ban on Bitcoin and cryptocurrency payments by banks in June has been credited for fueling this exponential growth. Notably, Bolivia had completely prohibited Bitcoin back in 2014, making this regulatory shift all the more momentous for the country’s financial ecosystem.
BCB’s acting president, Edwin Rojas Ulo, expressed enthusiasm for Bolivia’s evolving financial landscape, stating, “BCB is paving the way for the use of cryptoassets in Bolivia. Our country is taking giant steps towards an economic future with greater use of accessible digital instruments.”
The recent data also reflects a notable 141% increase in cryptocurrency transactions over the past three months when compared to the preceding six months. This surge coincided with six additional financial institutions registering to provide virtual asset services, enabling banks to engage in crypto transactions via approved electronic channels.
Rojas Ulo emphasized that this integration of virtual assets is expected to enhance the competitiveness of Bolivian businesses in the global market, setting the stage for increased participation in international trade and commerce.
Noteworthy initiatives post the ban lift include the incorporation of virtual assets into the Economic and Financial Education Program by Bolivia’s central bank. Additionally, the organization has conducted 33 workshops nationwide, reaching over 3,000 individuals to educate them about the evolving digital currency landscape in the country.
While there are promising developments in the cryptocurrency realm in Bolivia, recent World Bank data indicates that consumer price inflation stood at 2.58% in 2023, positioning Bolivia as one of the countries with comparatively low inflation rates in Latin America. Over the last five years, the Bolivia boliviano has experienced a marginal 2.4% decline in purchasing power against the US dollar.
In conclusion, Bolivia’s embrace of virtual assets post the Bitcoin ban has set the stage for a transformative financial era, aligning the country with global digital trends and fostering financial inclusion and innovation.
