Bolivia Sees 630% Surge in Crypto Transactions After Ban Lifted

Bolivia has witnessed a remarkable surge in cryptocurrency transactions, with the total value reaching 430 million US dollars in just 12 months. This significant increase of 630% comes after the country lifted its ban on cryptocurrency in 2024. The Central Bank of Bolivia reported that the majority of these transactions, approximately 86%, are conducted by ordinary citizens, highlighting the growing popularity of cryptocurrency as a method of everyday payments and savings. Platforms like Binance are widely used by these individuals, indicating a shift towards digital assets for financial transactions.

The Bolivian government has taken steps to regulate this rapid growth. In May 2025, Supreme Decree No. 5384 was issued, which provides a framework for the regulation of virtual assets and Fintech companies. The decree defines virtual assets, tokenized assets, blockchain networks, and custody services, ensuring clarity and transparency in the crypto market. It also imposes strict licensing requirements on Virtual Asset Service Providers (VASPs), mandating compliance with anti-money laundering and anti-terrorism financing regulations in line with GAFILAT standards. This move aims to create a safer environment for all participants in the crypto market.

In addition to regulatory measures, the Central Bank of Bolivia has launched a financial literacy program to educate the public on safe crypto usage. This initiative is crucial as many individuals are new to cryptocurrency. The program includes on-site workshops across all nine departments of Bolivia, teaching participants how to handle private keys and wallets, detect fraud, and understand the risks associated with crypto price fluctuations. The workshops also provide guidance on avoiding scams on applications like WhatsApp, ensuring that citizens can use cryptocurrency without falling victim to fraud.

The surge in crypto transactions is closely linked to a significant policy shift. Until June 2023, the use of virtual asset payments in Bolivia was prohibited. The lifting of this ban in June 2024 opened the door for new crypto services and trading platforms, contributing to the rapid growth in crypto transactions. The Central Bank argues that crypto payments make foreign currency more accessible to the public, benefiting families and small enterprises in making international payments. This accessibility is particularly useful for self-employed workers and small shops looking to expand their businesses.

Cryptocurrency is not only being used by ordinary citizens but also by government-owned companies. The national energy company, YPFB, began using digital assets to pay for imported fuel on March 13, 2025. This initiative was driven by a shortage of US dollars and supply chain issues, demonstrating the government's confidence in the use of cryptocurrency for quick and secure payments. The Central Bank plans to provide more information to the public through quarterly reports, detailing the volume of crypto being traded and ensuring compliance with Bolivia's tax laws, including VAT.

In conclusion, Bolivia's crypto market is experiencing robust growth, with the government taking steps to encourage innovation while safeguarding its citizens. The nation is poised to embrace a digital future, leveraging cryptocurrency for both personal and public sector transactions. The combination of regulatory frameworks, financial literacy programs, and government support positions Bolivia as a leader in the adoption of digital assets.