Bitcoin News Today: Bolivia partners with El Salvador to boost crypto adoption as fiat alternative

Bolivia has formalized a strategic partnership with El Salvador to promote the adoption of cryptocurrencies as a reliable alternative to traditional fiat currencies. The collaboration, sealed through a memorandum of understanding between Bolivia’s Central Bank and El Salvador’s National Commission of Digital Assets (CNAD), represents a significant policy shift for Bolivia, which previously imposed a strict ban on virtual assets [1]. The agreement aims to foster the development of secure and modern digital asset ecosystems, leveraging El Salvador’s experience as the first country to adopt Bitcoin as legal tender in 2021 [2].

The partnership, signed in mid-July 2025, facilitates the exchange of information on blockchain technologies, risk management, and regulatory best practices. Central to the agreement is the collaboration between key figures in both nations’ financial institutions: Edwin Rojas Ulo, Acting President of Bolivia’s Central Bank, and Juan Carlos Reyes García from El Salvador’s CNAD. Both countries are aiming to enhance their financial systems through the integration of digital assets [3].

Bolivia’s regulatory environment has evolved rapidly since the lifting of its crypto ban in June 2024 under Board Resolution 082/2024. This policy shift has permitted the legal use of virtual assets for cross-border transactions and e-commerce payments. In support of public understanding, the Central Bank has conducted over 33 educational workshops on digital currencies [4]. The surge in adoption is evident, with virtual asset usage in Bolivia rising by 532% in a single year, amounting to $294 million in annual transactions [5]. This growth is driven by both government-backed initiatives and consumer demand, including the recent authorization of the state oil company YPFB to use cryptocurrency for international fuel purchases [6].

The partnership is part of a broader push to modernize Bolivia’s financial infrastructure and expand financial inclusion. By integrating digital assets into its economic framework, Bolivia seeks to align with global trends in financial innovation. The collaboration with El Salvador is also expected to attract international crypto firms and stimulate further investment in the region [7].

Despite the optimism, the adoption of cryptocurrencies in Latin America has faced challenges. El Salvador’s own Bitcoin experiment has encountered fiscal constraints, including a $1.4 billion IMF loan that has restricted new Bitcoin purchases and mandated the privatization of the state-run Chivo wallet by July 2025 [8]. However, the updated regulatory framework in El Salvador has contributed to reduced fiscal risk, enhanced transparency, and improved macroeconomic stability [9].

The agreement between Bolivia and El Salvador reflects a growing regional trend in Latin America, where nations are increasingly exploring digital assets as tools for economic resilience and international trade. By focusing on secure, regulated ecosystems, both countries aim to address financial exclusion and support local entrepreneurship, leveraging the transformative potential of cryptocurrencies.

Source:

[1] Cointelegraph - [https://cointelegraph.com/news/bolivia-calls-crypto-reliable-alternative-to-fiat-in-el-salvador-partnership](https://cointelegraph.com/news/bolivia-calls-crypto-reliable-alternative-to-fiat-in-el-salvador-partnership)

[2] BeInCrypto - [https://beincrypto.com/bolivia-el-salvador-crypto-agreement/](https://beincrypto.com/bolivia-el-salvador-crypto-agreement/)

[3] CryptoSlate - [https://cryptoslate.com/el-salvador-to-help-bolivia-embrace-crypto-to-boost-economic-growth/](https://cryptoslate.com/el-salvador-to-help-bolivia-embrace-crypto-to-boost-economic-growth/)

[4] Press Release - Bolivia’s Central Bank

[5] Reuters - [https://www.reuters.com](https://www.reuters.com)

[6] Press Release - Bolivia’s Cryptocurrency Revolution

[7] Cryptonews - [https://cryptonews.com/news/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/)

[8] IMF Documentation - 2025 Loan Agreement

[9] TradersUnion - [https://tradersunion.com/news/cryptocurrency-news/show/409051-el-salvador-and-bolivia-sign-crypto-cooperation/](https://tradersunion.com/news/cryptocurrency-news/show/409051-el-salvador-and-bolivia-sign-crypto-cooperation/)