Bolivia looks to El Salvador for crypto guidance as locals turn to digital currencies

A year after having raised its ban on cryptocurrencies, Bolivia joined El Salvador to advance its digital asset policy and infrastructure. Will Bolivia go on crypto?

Bolivia, a country struggling with economic instability, and El Salvador, one of the First Nations to adopt bitcoin as a call for offers, joined the promotion of crypto as an alternative to traditional currencies.

According to a letter Published by the Central Bank of Bolivia (BCB), the two countries have signed a memorandum of understanding (MOU) to facilitate mutual cooperation in the development of cryptographic policies, the regulatory strategy and the exchange of blockchain intelligence tools.

The agreement comes into force immediately and remains valid for an indefinite period.

What is Bolivia hopes to gain partnership with El Salvador?

Bolivia sees the early entry of El Salvador into cryptographic space as a model that deserves to be studied. By becoming the first nation to recognize Bitcoin as a legal aspect in 2021, El Salvador won both praise and a meticulous examination.

The Central Bank of Bolivia now hopes to learn from this experience, in particular in the development of effective cryptography regulations, risk management and the integration of blockchain in its financial infrastructure.

According to the official letter from the BCB, the objective is to promote “safe and regulated” digital asset ecosystems which can attract investments and create new economic opportunities. The central bank said that it considered cryptocurrencies as a viable and reliable alternative to traditional currencies, especially for families and small entrepreneurs.

In particular, CNAD, the regulatory body supervising the cryptography sector in Salvador, will help Bolivia understand the operational and regulatory challenges associated with digital assets.

El Salvador’s experience as the first country to adopt Bitcoin because the legal strategic partner For Bolivia, which is still in the early stages of its national cryptography framework.

Why does Bolivia are continuing this now?

Timing is not a coincidence. The agreement comes only one year after Bolivia has repealed its long -standing cryptography ban in June 2024. This reversal opened the door to banks to treat Bitcoin and Stablecoin transactions.

Since then, crypto exchange volumes have increased. According to official data, Bolivia has recorded $ 294 million in cryptographic transactions by mid-2025, compared to $ 46.8 million in the months that followed the ban.

Years of economic difficulties have already pushed many Bolivians to seek alternatives. The country’s currency reserves have dropped almost 98% in the last decade, from $ 12.7 billion in 2014 to only $ 165 million in April 2025.

The national currency, the Boliviano, remains in service, but its purchasing power has considerably eroded. On the black market, it is negotiated at high discounts, and fears of greater devaluation have pushed a lot to seek stability in the form of American dollars or caught cryptocurrencies like USDT de Tether.

Bolivians actively use cryptocurrencies

Small businesses, including restaurants, hair salons and beauty salons, now accept payments in Bitcoin and USDT. In many urban centers, it would not be uncommon to see menus or price labels directly in stablecoins.

In a statement Earlier this year, the CEO of Tether, Paolo Ardodino, described this quarter of a base as a “discreetly revolutionary” development while sharing images of stores in Bolivia with their goods in USDT.

According to the former president of the central bank Jose Gabriel Espinoza, daily volumes of USDT transaction reached $ 600,000 in 2025Coming in previous years. Although this remains a fraction of the global economy, the adoption rate continues to grow quickly.

As before reported By crypto.News, the Bolivian banking giant Banco Bisa paved the way by launching a daycare service for the USDT of Tether in October of last year. Meanwhile, local media reported In March, that the Bolivia oil and gas company, YPFB, confirmed plans to start using cryptocurrency for fuel imports.