Bolivia Sees 630% Surge in Crypto Transactions Driven by Legal Reforms

Bolivia has experienced a significant surge in cryptocurrency transactions, with over $430 million in virtual asset payments recorded since mid-2024. This represents a 630% year-over-year increase, driven by a combination of legal reforms and growing public demand for digital payment solutions. The Bolivian central bank's report highlights the rapid adoption of cryptocurrencies, particularly among retail users who account for 86% of all virtual asset operations. This trend is largely attributed to the convenience and efficiency of using cryptocurrencies for cross-border payments, remittances, and business transactions, especially for micro and small companies.

The surge in crypto transactions is closely linked to the enactment of Resolution No. 082/2024, which authorized the use of electronic payment instruments for virtual asset operations. This legal clarity has facilitated a more robust and secure environment for cryptocurrency use, leading to a twelvefold increase in crypto transactions through the financial system between July 2024 and May 2025. The total value of these transactions reached over Bs611 million (approximately $88 million).

Binance has emerged as a dominant player in Bolivia's digital rails, with its payment channels accounting for the majority of the volume. Although precise market share data was not disclosed, Binance's infrastructure has been instrumental in facilitating retail-facing transactions. The public sector has also embraced cryptocurrencies, with Bolivia's national energy company, YPFB, settling fuel import contracts using digital assets. This move was driven by a dollar shortage and supply chain strains, marking the first state-sanctioned use of Bitcoin in the public sector.

In response to the increasing volume and associated risks, Bolivia issued Supreme Decree No. 5384 in May 2025. This decree provides formal regulation for virtual assets and Fintech service providers, including definitions for virtual assets, tokenized assets, blockchain networks, and custody structures. It also outlines licensing requirements for Virtual Asset Service Providers (VASPs) and mandates compliance with anti-money laundering and counter-terrorism financing (AML/CFT) standards aligned with GAFILAT (Latin American Financial Action Task Force) guidelines. The decree aims to provide clarity for both startups and the legacy financial system, fostering a more regulated and secure environment for cryptocurrency operations.

To ensure the safe and responsible adoption of cryptocurrencies, the Bolivian central bank has launched a comprehensive financial literacy campaign. This initiative includes in-person policy workshops across all nine departments of the country, covering topics such as managing private keys and wallets, identifying scams, understanding price volatility, and avoiding custodial wallet vulnerabilities. The campaign is designed to empower citizens to participate in the digital economy safely and responsibly, with training modules that include spotting scams on popular messaging platforms like WhatsApp.

The central bank and financial police are taking proactive measures to monitor and manage the risks associated with the growing crypto traffic. All regulated banks are now required to submit daily reports on crypto outflows, conduct real-time screenings against sanctions lists, and flag suspicious activity for enhanced investigation. While 27 accounts were identified for review between July 2024 and May 2025, no bans or fines were issued, emphasizing a cautious approach to regulation. The central bank also stressed that custodian wallets are not protected under the country's central deposit insurance system, urging users to keep private keys offline and use self-custody whenever possible.