Bolivia sees 112% surge in crypto activity after lifting ban

Bolivia has seen a significant rise in cryptocurrency adoption following the removal of its blanket ban on crypto operations earlier this year.

According to data from the Central Bank of Bolivia, purchase and sale operations for digital assets increased by 112% after the ban was lifted.

As of November 2024, the bank reported that over 252,000 Bolivians now hold digital assets and complete transactions on various platforms.

The volume of transactions also surged, exceeding $75 million from July to October 2024, up from $46.4 million during the first two quarters of the year.

Edwin Rojas Ulo, president of the Central Bank, stated that the rise in crypto activity has helped "dynamize the national payment system."

This surge in crypto adoption has led to the emergence of more institutions offering crypto services in Bolivia, with 9 companies now providing such services.

Rojas Ulo also pointed out that domestic transfers are the most common use of crypto assets, followed by international transfers and online purchases.

He highlighted the growing popularity of stablecoins, such as USDT (CRYPTO:USDT), as a useful tool in Bolivia's current financial climate.

Stablecoins, which are pegged to the dollar, are being increasingly used as a proxy for the U.S. currency in the country.

This comes as Bolivia faces a dollar shortage, making stablecoin-based services more attractive.

In response to this trend, Bisa Bank became the first institution in the country to offer trading and custody services for Tether's USDT.

Yvette Espinoza, president of the banking oversight body ASFI, commented that this development would help mitigate risks associated with unsafe crypto transactions for customers.