Key takeaways

  • Bolivia’s crypto policy evolved from an outright ban in 2014 to partial adoption by March 2025, with significant regulatory changes in 2024.
  • The Banco Central de Bolivia (BCB) initially banned cryptocurrencies to protect the national currency, the Boliviano, but lifted the ban in June 2024, allowing transactions via authorized electronic means.
  • As of March 2025, state energy firms were reportedly planning to use cryptocurrencies for fuel imports, reflecting economic adaptation and financial modernization.
  • Bolivia’s crypto policy evolution aligns with wider crypto regulations in Latin America, where countries are gradually integrating digital currency policies into their financial systems.

Bolivia has had a turbulent relationship with cryptocurrency. In 2014, the country imposed a strict crypto ban, citing concerns over financial stability and consumer protection. By 2017, Bolivian lawmakers referred to cryptocurrencies as a “pyramid scheme,” further solidifying their stance against digital assets. 

Still, global trends and economic pressures, including the need for financial innovation and solutions to a dollar shortage, have led to major policy shifts.

The Bolivian financial system has traditionally relied on strict monetary controls, with the Banco Central de Bolivia (BCB), the central bank, enforcing stringent regulations to prevent financial instability. This cautious approach led to Bolivia standing out in Latin America as one of the few nations with an outright ban on cryptocurrency usage.  

However, the growing adoption of digital currencies across the region, particularly in Argentina, Brazil and El Salvador, pressured Bolivian authorities to reconsider their stance on crypto adoption.

This article explains the journey from Bolivia's strict cryptocurrency ban to its adoption of regulated digital assets. It covers the historical context of the 2014 ban, the reasons behind it, and how regional trends, economic pressures and technological advancements led to the 2024 shift in policy.

Bolivia lifts crypto ban: What led to the policy shift?

By June 2024, the Bolivia crypto ban was withdrawn, marking a significant regulatory shift. The BCB issued Board Resolution N°082/2024, allowing cryptocurrency transactions through authorized electronic means. This policy change was driven by multiple factors:

  • Regional influence: Countries across Latin America had been adopting crypto regulations, with Argentina and Brazil integrating blockchain-based financial tools into their economies.
  • Economic necessities: Bolivia faced ongoing economic challenges, particularly related to foreign currency reserves and inflation control.
  • Global regulatory recommendations: The Latin American Financial Action Task Force (GAFILAT) urged Bolivia to implement measures to regulate virtual asset service providers (VASPs) and monitor cryptocurrency activities.
  • Technological growth: The increasing popularity of blockchain technology and Bolivian fintech regulations created momentum for policy evolution. 

With these changes, Bolivia’s digital currency policy has entered a new phase, enabling controlled access to cryptocurrencies under governmental oversight.

Did you know? Bolivia’s economic history is marked by periods of severe instability, most notably in the 1980s when the country experienced one of the worst hyperinflation crises in the world. At its peak in 1985, inflation soared above 23,000%, rendering the Bolivian peso virtually worthless.

Bolivia’s crypto policy evolution, explained

Bolivia’s cryptocurrency policy evolution was driven by economic necessity, technological progress and regional regulatory trends. The following sections explore the historical context, major policy shifts and the implications of these changes.

Historical context: The 2014 ban

In 2014, the Bolivian cryptocurrency laws explicitly prohibited the use of any digital asset not issued by the Bolivian government. The BCB justified this decision by stating it was: 

  • Protecting the national currency (Boliviano) from depreciation.
  • Preventing illicit financial activities, including money laundering and tax evasion.
  • Maintaining control over monetary policy, ensuring that foreign digital currencies did not disrupt Bolivia's financial system.

At the time, Bolivia’s approach to crypto regulation was among the strictest in the world, differentiating it from other Latin American nations, where regulatory uncertainty was more common than outright bans.

Mid-period adjustments: 2020-2022 restrictions

Despite the Bolivia crypto ban, public interest in digital assets persisted. In response, financial regulators reinforced the prohibition:

  • 2020: Board Resolution N°144/2020 reaffirmed that cryptocurrencies were not permitted for transactions, trading or investments.
  • 2022: The BCB explicitly prohibited the banking sector from facilitating any cryptocurrency transactions, effectively preventing financial institutions from supporting crypto-related activities.

Turning point: Lifting the ban in 2024

By mid-2024, Bolivia made a surprising reversal. The Bolivia crypto legalization effort was formalized with the Board Resolution N°082/2024, which repealed the previous bans and allowed cryptocurrency transactions under regulated conditions. 

Bolivian central bank notification on crypto transaction

The resolution enabled:

  • The use of Electronic Payment Instruments (EPI) for virtual asset transactions.
  • Regulatory oversight for virtual asset providers, aligning Bolivia with crypto regulations in Latin America.
  • Consumer protection measures were introduced, ensuring that users were educated about the risks associated with cryptocurrency transactions.
  • In a notable development, Banco Bisa, one of the country’s leading banks, introduced a stablecoin custody service in October 2024, focusing on Tether’s USDT. This move marked a turning point in Bolivia’s financial sector, reflecting both its historical struggles with currency stability and its cautious embrace of digital assets like Tether USDt (USDT) and USD Coin (USDC).
  • The central bank reported a 100% increase in transactions between July and September 2024, averaging $15.6 million monthly. 

Status as of March 2025

As of March 2025, the country has moved toward a structured regulatory framework:

  • Legal status: Cryptocurrencies are not legal tender but can be traded through regulated electronic channels.
  • Economic impact: The government recognizes digital assets as an alternative means for international trade, with state energy firms like Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) exploring crypto payments for fuel imports.
  • Regulatory oversight: The BCB, Autoridad de Supervisión del Sistema Financiero (Financial System Supervisory Authority), and Unidad de Investigaciones Financieras (Financial Investigations Unit) are responsible for ensuring financial security, preventing illicit transactions and educating the public on the risks of crypto investments.

Timeline of major policy changes in Bolivia

Timeline of Bolivia's cryptocurrency policy evolution

Did you know? To address the hyperinflation crisis of the 1980s, Bolivia introduced the Boliviano in 1987, replacing the peso at an exchange rate of 1 million pesos to 1 Boliviano. The new currency was pegged to the US dollar to restore confidence and stabilize the economy.

Boliviano pegged to USD vs USD-pegged stablecoins: Key differences

The Bolivian Boliviano pegged to the US dollar and USD-pegged stablecoins both aim to maintain a stable value relative to the USD, but they differ significantly in how they are managed, their use cases, accessibility and risks. 

Here's a breakdown of the differences:

1. Management

  • Boliviano pegged to USD: Boliviano’s value is tied to the USD through a fixed exchange rate set and maintained by the BCB. The central bank actively intervenes in the currency market, using its reserves of USD to buy or sell Bolivianos as needed to keep the exchange rate stable. This is a centralized, government-controlled system that depends on the bank’s ability to manage economic conditions and maintain sufficient reserves.
  • USD-pegged stablecoins: Stablecoins like USDT and USDC are cryptocurrencies designed to hold a 1:1 value with the USD. They are typically managed by private companies or decentralized protocols, not governments. Their stability is achieved by holding reserves of USD or other assets, or through algorithmic mechanisms, and they operate on blockchain technology.

2. Use cases

  • Boliviano: As Bolivia’s national currency, the Boliviano is used primarily for everyday transactions within the country, such as buying goods and services or paying taxes. Its peg to the USD helps reduce inflation and provides economic stability domestically.
  • Stablecoins: USD-pegged stablecoins are widely used in the cryptocurrency ecosystem and for international purposes. They are utilized for cross-border payments, remittances, trading on crypto exchanges and as a store of value, especially in countries with volatile local currencies.

3. Accessibility

  • Boliviano: The Boliviano is mainly accessible within Bolivia and tied to the country’s traditional banking and financial systems. Its use outside Bolivia is limited, and access depends on local infrastructure.
  • Stablecoins: Stablecoins are globally accessible with an internet connection and a digital wallet. This makes them particularly useful in regions with limited banking services, offering a decentralized alternative for transferring value worldwide.

4. Risks

  • Boliviano: The stability of the Boliviano’s peg relies on the BCB’s USD reserves and Bolivia’s economic health. If reserves run low due to trade imbalances, economic shocks or mismanagement, the peg could weaken or fail, leading to devaluation or a currency crisis.
  • Stablecoins: Stablecoins face risks related to the issuer’s ability to maintain adequate reserves or the reliability of their stabilization mechanisms. For example, if reserves are mismanaged or not fully backed, a stablecoin could “depeg” and lose its 1:1 value with the USD. Additionally, the regulatory environment for stablecoins remains uncertain in various jurisdictions, adding another layer of risk.

Cryptocurrency regulations in Bolivia vs other Latin American countries

Bolivia’s regulatory evolution places it in a unique position compared to its neighbors. While it lags behind leaders like El Salvador and Brazil in adoption scale and ambition, it has moved ahead of countries like Ecuador, which relaxed its 2014 Bitcoin ban in 2018 but remains skeptical, warning against speculative use without robust regulation.  

Let’s understand how Bolivia’s crypto stance compares with other Latin American countries:

El Salvador

  • Pioneering Move: First to adopt Bitcoin as legal tender in 2021, to boost financial inclusion and investment.
  • Contrast: Far more aggressive than Bolivia’s regulated, non-tender approach; focuses on full integration vs Bolivia’s cautious tools.

Brazil

  • Regulation: “Brazilian Crypto-Assets Law” (2022) regulates virtual assets, emphasizing AML and fraud prevention.
  • Adoption: High crypto use, including stablecoins in retail; more advanced ecosystem than Bolivia’s emerging market.

Mexico

  • Framework: Regulates crypto exchanges under fintech laws with AML/KYC requirements; not legal tender, like Bolivia.
  • Difference: More established system vs Bolivia’s recent shift, though both prioritize oversight over full adoption.

Argentina

  • Context: High inflation (>100%) drives crypto use for savings and transactions; some bank restrictions persist.
  • Shift: Pro-Bitcoin president elected in 2023 hints at liberalization, unlike Bolivia’s controlled pivot from economic need.

Venezuela

  • Adoption: Hyperinflation (>400%) fuels crypto use; state-backed Petro launched, but mining recently banned.
  • Contrast: Crisis-driven reliance vs Bolivia’s modernization focus; less regulatory consistency.

Chile

  • Approach: Drafting crypto laws since 2019; prioritizes regulation over bans, similar to Bolivia’s 2024 shift.
  • Pace: Earlier momentum than Bolivia, though still in development.

Colombia

  • Testing Ground: Crypto sandbox since 2020; regulated approach aligns with Bolivia’s recent moves.
  • Edge: Started earlier, with broader testing vs Bolivia’s late entry.

Ecuador

  • Stance: Relaxed 2014 Bitcoin ban in 2018 but remains cautious, warning against speculation.
  • Comparison: Lags Bolivia’s 2025 regulated adoption in practical use and structure.

Did you know? Bolivia’s high poverty (36.4% in 2021) and income inequality (Gini ~ 40.9 in 2021) — among the region’s worst — mirror challenges in countries like Venezuela, yet its stable currency peg to the USD offers a different economic backdrop than Argentina’s or Venezuela’s volatility.

Opportunities, challenges and future outlook of Bolivia’s evolving crypto policy

The crypto policy evolution Bolivia has undergone highlights the country's effort to balance innovation with economic stability. The key implications of these policy changes include:

Positive impacts

  • Increased investment: A regulated cryptocurrency framework can attract foreign investment, particularly in fintech and blockchain sectors.
  • Financial inclusion: Many Bolivians lack access to traditional banking services and cryptocurrency provides an alternative financial system.
  • Economic diversification: Digital assets offer new solutions for international trade, including Bolivia's state-backed use of crypto for energy imports.

Challenges and considerations

  • Regulatory framework development: Bolivia needs to ensure strong legal oversight to prevent fraud and money laundering.
  • Public awareness and education: The BCB's Economic and Financial Education Plan is critical for ensuring that citizens understand the risks and benefits of crypto adoption in Bolivia.
  • Market volatility and stability concerns: The Bolivia cryptocurrency laws must account for potential fluctuations in crypto prices, ensuring minimal disruption to national financial stability.

While challenges remain, 2025 is set to be a pivotal year in determining the long-term role of digital assets within the nation’s financial ecosystem. With the gradual lifting of restrictions and government-backed initiatives, Bolivia’s digital currency policy reflects a balance between caution and innovation.  

Whether this will lead to full-scale adoption or a more limited regulatory framework will depend on economic factors, regional influences and continued financial modernization efforts.