Bolivia enabled purchase and sale operations with cryptocurrencies

On June 26, the Bolivian government enabled trading with virtual currencies, or cryptocurrencies, to boost the economy. Its use is not mandatory and users must assume any risk involved

The government of Bolivia authorized the use of cryptocurrencies for buying and selling, with the purpose of boosting the local economy.

After a moment of tension experienced by irregular military movements on June 26, the government of Luis Arce announced the authorization of trading with digital assets. The president of the Central Bank, Edwin Rojas, indicated that the measure was deemed necessary for “the use of electronic payment channels and instruments for purchase and sale operations of virtual assets that contribute to the strengthening of financial and commercial activities.”

Although there are no known official records, between 10,000 to 12,000 operations with cryptocurrencies of less than 100,000 bolivianos ($14,479) would be carried out monthly in Bolivia, according to BCB estimates.

Rojas emphasized that Bolivia “cannot be isolated from the technological changes that are occurring in the world.”

In this sense, it considers that the lifting of restrictions on the use of cryptocurrencies, which has been in force since 2020, will allow commercial exchange to be boosted.

The transition in the country in terms of payments had already begun, through operations with “electronic cards, mobile wallet, QR codes, electronic billing,” among other mechanisms.

The BCB is in charge of dissemination campaigns in this regard, to accelerate the population’s acceptance of these assets as methods of interoperability. It has been clarified that any risk in cryptocurrency trading will be assumed by the user.

The president of the regulatory entity made it clear that the Bolivian is the only legal tender in the country; adding that virtual assets are not legal tender and “do not constitute cash” and “have no cash equivalents.” Hence, it is not an obligation to use them in local businesses.

M.Pino

Source: swissinfo

(Reference image source: Galina Nelyubova in Unsplash)

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