Bolivia’s Central Bank has formed a strategic alliance with El Salvador’s National Commission of Digital Assets through a newly signed memorandum of understanding. The partnership aims to leverage El Salvador’s pioneering experience in cryptocurrency integration to modernize Bolivia’s financial infrastructure and accelerate digital asset adoption.
Since lifting its cryptocurrency ban in mid-2024, Bolivia has witnessed explosive growth in digital asset trading, with transaction volumes surging to $294 million. This shift reflects deepening public confidence in cryptocurrencies as viable financial instruments, especially amid severe economic pressures.
Practical adoption is already emerging across Bolivian commerce, with some merchants pricing essential goods in Tether (USDT) due to acute US dollar shortages and import constraints. This transition occurs against the backdrop of a catastrophic 98% decline in national foreign reserves over the past decade, plummeting from $12.7 billion to just $165 million.
The landmark agreement arrives weeks before Bolivia’s pivotal general election, positioning cryptocurrency policy as a central economic and political issue. Both nations will collaborate on regulatory frameworks and implementation strategies, aiming to establish cryptocurrencies as accessible tools for financial stability during Bolivia’s ongoing monetary crisis.