The financial landscape in Bolivia is undergoing a transformative shift as traditional banking institutions embrace digital assets. In a landmark move, Banco Bisa, one of the country’s leading banks, has officially launched a USDT (Tether) custody service, enabling customers to buy, sell, and transfer the world’s most widely used stablecoin. This development marks a significant milestone in Bolivia’s evolving relationship with cryptocurrency — a journey that has transitioned from outright prohibition to cautious yet progressive adoption.
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A Strategic Move Toward Financial Inclusion
Banco Bisa’s new offering allows users to securely hold USDT, send funds to family members, and conduct cross-border payments with greater speed and lower fees compared to traditional remittance channels. As global remittances continue to rise across Latin America, this service addresses a critical need for efficient and accessible financial tools.
By leveraging blockchain technology through USDT, Banco Bisa empowers its clients with near-instant settlement capabilities while maintaining regulatory compliance. The bank emphasized that all users must undergo a rigorous verification process to ensure transaction security and regulatory adherence — providing peace of mind for both customers and regulators.
Regulatory Backing Strengthens Market Confidence
The launch of this service has received strong support from Bolivia’s financial watchdog, the Superintendency of the Financial System (ASFI). Yvette Espinoza, a senior official at ASFI, affirmed that the initiative operates within the country's updated regulatory framework, allowing citizens to engage in crypto transactions under formal oversight.
This regulatory endorsement plays a crucial role in mitigating risks associated with unregulated crypto interactions — such as fraud, money laundering, or loss of funds — which have historically plagued decentralized platforms. With Banco Bisa acting as a licensed custodian, users benefit from institutional-grade protection while gaining exposure to digital assets.
“The integration of USDT into our banking services reflects our commitment to innovation while ensuring security and compliance,” said Franco Urquidi, Vice President of Business at Banco Bisa. “We’re giving people a trusted way to participate in the digital economy.”
From Crypto Ban to Digital Asset Embrace
This progress stands in stark contrast to Bolivia’s earlier stance on cryptocurrencies. In 2014, the country implemented a strict ban on all forms of private digital currencies, including Bitcoin (BTC). At the time, the Central Bank of Bolivia declared it illegal to use any currency not issued or regulated by the government, citing concerns over monetary sovereignty and financial stability.
The fear was that decentralized currencies could undermine the Bolivian peso and expose citizens to speculative losses. For nearly a decade, Bolivia remained one of the few countries in Latin America with a complete crypto prohibition.
However, by 2024, the nation began reevaluating its position. On June 28, 2024, Bolivia officially lifted its ban on Bitcoin and cryptocurrency payments, authorizing financial institutions to facilitate transactions involving digital assets. This policy reversal signaled a strategic pivot aimed at modernizing the national economy and aligning with broader regional trends.
Countries like Brazil, Argentina, and Colombia have already integrated crypto into their financial ecosystems through taxation frameworks, exchange licensing, and central bank digital currency (CBDC) research. Bolivia’s updated regulations reflect an effort to catch up and remain competitive in the rapidly evolving fintech landscape.
Surge in Crypto Activity Post-Legalization
Since the lifting of restrictions, Bolivia has witnessed a dramatic surge in virtual asset activity. According to a report released by the Central Bank on September 27, 2024, virtual asset transaction volume doubled — increasing by 100% — in the months following legalization.
Between July and September 2024 alone, average monthly crypto transactions reached $15.6 million, indicating strong public interest and growing institutional participation. While USDT dominates current activity due to its stability and ease of use, experts anticipate increased demand for other major cryptocurrencies like Bitcoin and Ethereum as awareness grows.
Despite this momentum, Bolivia has yet to introduce a formal tax framework for cryptocurrency transactions. The absence of clear tax guidelines presents both opportunities and challenges: while it lowers barriers to entry for new users, it also creates uncertainty around long-term compliance and government revenue planning.
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Frequently Asked Questions (FAQ)
Q: What is USDT?
A: USDT (Tether) is a stablecoin pegged 1:1 to the U.S. dollar. It combines the stability of fiat currency with the speed and accessibility of blockchain technology, making it ideal for payments, remittances, and trading.
Q: Is cryptocurrency legal in Bolivia now?
A: Yes. As of June 28, 2024, Bolivia lifted its previous ban on Bitcoin and other digital assets, allowing financial institutions to offer crypto-related services within a regulated environment.
Q: Can anyone use Banco Bisa’s USDT service?
A: The service is available to verified Banco Bisa customers who complete the bank’s identity verification process. This ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Q: Why did Bolivia reverse its crypto ban?
A: The government reversed its stance to promote financial innovation, improve access to global markets, reduce reliance on traditional remittance systems, and align with regional fintech advancements in Latin America.
Q: Are crypto transactions taxed in Bolivia?
A: Not yet. While crypto activity is now legal, Bolivia has not implemented specific tax regulations for digital asset transactions. Such policies may emerge as usage continues to grow.
Q: How does USDT help with cross-border payments?
A: USDT enables fast, low-cost international transfers without relying on intermediaries like Western Union or SWIFT. Funds can be sent globally in minutes, with minimal fees compared to traditional banking networks.
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The Road Ahead for Digital Finance in Bolivia
Banco Bisa’s USDT custody service represents more than just a product launch — it’s a symbol of Bolivia’s broader economic modernization. By integrating stablecoins into mainstream banking, the country is improving financial inclusion, especially for unbanked and underbanked populations who rely on informal remittance channels.
Moreover, this shift positions Bolivia to attract fintech investment and talent, fostering innovation in digital payments, blockchain infrastructure, and decentralized finance (DeFi). Future developments may include CBDC exploration, tokenized assets, or even regulated crypto exchanges.
As Latin America continues to lead in blockchain adoption — driven by economic volatility, high remittance flows, and mobile-first populations — Bolivia’s journey from prohibition to participation serves as a compelling case study in adaptive policymaking.
With institutional backing, rising transaction volumes, and growing public trust, Bolivia is no longer resisting the digital asset revolution — it’s beginning to shape its own version of it.