Since lifting its cryptocurrency ban in 2024, Bolivia has experienced a significant increase in crypto activity, with $430 million in transactions recorded over the year.
Growth in Crypto Transactions
According to the Central Bank of Bolivia, cryptocurrency transactions reached $430 million over the past 12 months, marking a 630% increase year-on-year. Notably, 86% of these transactions were conducted by individuals primarily through Binance. The increase in digital asset usage is attributed to economic instability, including inflation and a shortage of U.S. dollars in the local financial system.
Government Support for Crypto
The Bolivian government has authorized state-owned energy company YPFB to use cryptocurrencies for fuel imports, including diesel. While actual transactions have not yet occurred, this represents a significant step towards integrating crypto into national economic operations.
Regulation and Public Awareness
To manage the rapid increase in digital asset usage, Bolivia has introduced a regulatory framework. The ban on crypto was lifted through Resolution 082/2024, followed by Decree 5384, which licenses fintech operators and establishes anti-money laundering standards. The Central Bank is also launching public education campaigns to inform citizens about crypto risks.
Bolivia showcases a rapid increase in crypto activity, driven by economic challenges, government support, and new regulations fostering sector development.
