Bitcoin Ban Lifted by Bolivian Central Bank
Since 2014, Bolivia has had a comprehensive ban on bitcoin and other cryptocurrencies. However, the Central Bank of Bolivia has now lifted the ban, allowing financial institutions to conduct transactions with digital coins. This decision comes into effect from June 26, and aims to modernize the country’s payment system.
According to the central bank, this decision was made to bring the country’s economy in line with the rest of Latin America. Bolivia has been struggling with inflation and economic difficulties, and its previous rules were not aligned with those of its neighboring countries.
Latin America’s Financial Action Task Force (LATF) has developed a single regulatory framework to stimulate economic growth in the region. This framework will be adopted by Bolivia, paving the way for financial institutions to participate in the digital asset market.
Cryptocurrencies Not Seen as Legal Tender
Although the ban has been lifted, it’s worth noting that bitcoin and other cryptocurrencies will not be recognized as legal tender in the country. This means that retailers are not obligated to accept digital transactions. However, banks will be able to carry out mutual transactions with digital assets.
Raising Awareness About Cryptocurrency Risks
The central bank also aims to educate citizens about the risks associated with cryptocurrencies and how to deal with them. This initiative is part of the country’s Economic and Financial Education Plan.
Countries Embracing Cryptocurrencies
Several countries are turning to cryptocurrencies as a means to boost their economies. This trend has already been observed in Latin America, with countries such as El Salvador and Argentina preparing to adopt bitcoin as legal tender.