Bolivia to integrate crypto into its financial system, starting with stablecoins

Key Takeaways

Bolivia is set to integrate stablecoins into the country’s formal financial system.
Banks will be allowed to offer crypto services such as savings accounts, credit cards, and loans.

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Bolivia’s newly appointed Economy Minister Jose Gabriel Espinoza has announced that the country will integrate cryptocurrencies into its formal financial system. The implementation will start with stablecoins and is part of Bolivia’s modernization push.

Banks will be permitted to offer crypto-based savings, credit cards, and loans to allow the assets to function as legal tender payment instruments, according to Espinoza.

The announcement represents a major regulatory reversal for Bolivia, which previously maintained a ban on cryptocurrencies before lifting these restrictions to enable formal stablecoin integration.

Following the Central Bank of Bolivia’s (BCB) decision to lift the ban on crypto transactions, Banco Bisa, a leading bank in Bolivia, launched services providing custody and transaction services for stablecoins like USDT, facilitating their use for cross-border payments and as a hedge against the local currency’s depreciation.