After 10 Years, Bolivia Finally Lifts Bitcoin Ban

After 10 years, Bolivia finally lifted the Bitcoin ban (Photo; Doc. Cryptotrader)

JAKARTA - Bolivia, a country in Latin America, has lifted a decade-long ban on Bitcoin (BTC), allowing banks to process crypto-related transactions as part of efforts to modernize its payment systems.

In a recent announcement, the country's central bank, Banco Central de Bolivia, stated that it had reversed its decision on digital asset transactions and freed banks to explore the industry. The lifting of the ban is believed to drive innovation, which has the potential to revive the struggling Bolivian economy.

Quoted from Coin Speaker, Banco Central de Bolivia also stated the goal of aligning the country's crypto regulations with other Latin American countries. The ban on digital assets came into effect in 2014 when Bolivia banned a population of 12.22 million people from interacting with crypto spaces, citing concerns over the lack of a clear regulatory framework and potential use for illegal activities.

Six years later, in December 2020, the government banned financial entities from processing crypto transactions through Council Resolution N$144/2020. Thanks to the country's new law, Bolivia has opened up to crypto after ten years of absence. However, new regulations only allow banks to conduct crypto transactions through state-approved channels.

The central bank warned that companies should not accept digital assets for payment of goods and services because the asset class has not been approved for such transactions. The state government explains that the law does not yet recognize crypto assets such as Bitcoin as legal tender in Bolivia.

The introduction of crypto laws is the result of the cooperation of three government agencies in the country. According to the announcement, the new legislation was made in partnership with the State Financial Investigation Unit, the Financial System Supervisory Authority, and the central bank.

The law comes into effect on June 26 and aligns Bolivian crypto regulations with regional standards supported by the Latin American Financial Action Task Force.

In addition to lifting the ban, Bolivia wants to launch an educational campaign to raise crypto awareness in the region. This planned initiative will be introduced under the country's Economic and Financial Education Plan. Through this program, Bolivians will learn about possible risks related to crypto assets and how to manage these risks responsibly.