Over 250,000 Bolivians Now Hold Crypto Assets

Bolivia, one of the smallest economies in Latin America, is witnessing a significant rise in crypto adoption. In a press release on November 25, the Central Bank of Bolivia highlighted the growing crypto activity, stating that it has “dynamized the national payment system.”

According to the Central Bank, purchase and sale operations for digital assets increased by 112% after the government lifted the blanket ban that had previously prohibited banks and payment institutions from facilitating transactions involving digital currencies. As of now, the bank estimates that over 252,000 Bolivians hold digital assets, actively engaging in trade operations on various platforms.

Edwin Rojas Ulo, president of the Central Bank, revealed that the volume of these operations exceeded $75 million in the last four months (July–October 2024). This represents a substantial growth compared to the $46.4 million traded during the first half of 2024. He further elaborated on transaction trends, noting that transfers to national banks rank first, followed by international transfers, with online purchases in third place.

The increasing popularity of cryptocurrencies has also led to a rise in the number of institutions offering crypto services in Bolivia, which now includes nine companies. Rojas Ulo has previously praised the utility of cryptocurrencies, particularly stablecoins like USDT, which he described as functioning like dollar proxies. He remarked, “Using stablecoins is as if one were trading in North American currency, although what one is doing are operations with these digital assets.”

Amid Bolivia’s current dollar scarcity, financial institutions have begun adopting stablecoin-based services. In October, Bisa Bank became the first institution to offer trading and custody services for Tether’s USDT. Yvette Espinoza, president of the banking system watchdog ASFI, explained that such services aim to “reduce the risk of unsafe interactions in the cryptocurrency market” for users.

For years, the ban kept crypto activity in the shadows, with limited formal participation from financial institutions. The Central Bank’s recent openness has created a regulated environment that enables the legal purchase, sale, and transfer of digital assets, bringing what was previously an underground activity into the mainstream.

The numbers tell a compelling story. Between July and October 2024, Bolivians traded over $75 million in cryptocurrencies, a significant jump from the $46.4 million recorded in the first half of the year.

The volume of transactions suggests that crypto is no longer limited to a niche group of tech enthusiasts. Instead, it is becoming part of everyday financial life for many Bolivians. Over 252,000 citizens now hold digital assets, demonstrating not just adoption but active engagement with cryptocurrencies as tools for savings, transactions, and even international remittances.

One of the most striking aspects of Bolivia’s crypto growth is the popularity of stablecoins like USDT. Stablecoins have become particularly valuable in a country grappling with a scarcity of US dollars. Traditionally, the dollar has been a cornerstone for savings and international trade in Bolivia, but recent shortages have disrupted these practices.

USDT, a dollar-pegged stablecoin, provides a digital workaround. It allows Bolivians to conduct transactions at a stable value without requiring access to physical dollars.

While Bolivia’s crypto journey is promising, there are hurdles to overcome. Education is critical. Many Bolivians are new to crypto, and a lack of understanding could lead to poor decision-making or vulnerability to scams. Regulators must also carefully monitor the market to ensure that rapid growth doesn’t outpace consumer protections.

At the same time, the opportunities are immense. With nine companies already in the market and significant trading volumes, Bolivia is poised to become a regional case study for how smaller economies can integrate crypto into their financial systems.

Organizations such as Dipprofit are committed to providing every individual with the basic knowledge of these processes to mitigate and manage the repercussions accordingly.