Bitcoin News Today: Bolivia and El Salvador Partner to Boost Crypto Development Amid 532% Usage Surge

Bolivia has marked a significant shift in its stance toward cryptocurrencies by signing a partnership with El Salvador to promote virtual asset development and exchange. The cooperation agreement, signed between Bolivia’s Central Bank and El Salvador’s National Commission of Digital Assets (CNAD), enables mutual knowledge sharing on blockchain technology, risk management, and regulatory frameworks. This collaboration reflects Bolivia’s growing acceptance of cryptocurrencies as a “reliable alternative” to traditional financial systems [1].

According to recent data, Bolivia’s virtual asset usage surged by 532% in one year, reaching $294 million in annual transactions as of June 2025 [2]. This growth followed regulatory changes under Board Resolution 082/2024, which lifted previous restrictions and allowed legal use of virtual assets for cross-border trade and e-commerce payments. The Central Bank has also launched educational initiatives, including over 33 nationwide workshops, to inform citizens about the characteristics and risks of digital assets [1].

The partnership with El Salvador positions Bolivia to leverage the latter’s experience as the world’s first country to adopt Bitcoin as legal tender. El Salvador’s CNAD has emerged as a key player in the global digital assets ecosystem, despite ongoing challenges stemming from its $1.4 billion IMF loan agreement. The loan requires El Salvador to maintain its existing Bitcoin holdings—approximately 6,244 Bitcoin valued at $742 million—and to privatize the state-run Chivo wallet by July 2025. These constraints have curtailed the government’s ability to acquire new Bitcoin and have led to a decline in public engagement with cryptocurrency education programs [1].

Bolivia’s cryptocurrency adoption has also expanded into international trade. Earlier this year, the Central Bank authorized state oil company YPFB to use virtual assets for fuel imports, addressing foreign currency shortages that previously disrupted domestic supply. This move underscores the government’s broader strategy to modernize the financial system and enhance financial inclusion through regulated digital asset ecosystems [1].

The rapid adoption of cryptocurrency in Bolivia aligns with a global trend of nations seeking alternative financial tools amid geopolitical and economic uncertainties. Six financial institutions in the country have reported a 40% growth in virtual asset operations between July and August 2025, reflecting the increasing legitimacy of digital currencies in the financial landscape [1].

Source: [1] Bolivia Calls Crypto 'Reliable Alternative' in New El Salvador Partnership Deal (https://cryptonews.com/news/bolivia-calls-crypto-reliable-alternative-in-new-el-salvador-partnership-deal/)

[2] Bolivia’s Virtual Asset Usage Explodes 532% in One Year (Reuters)