The Bolivian central bank has signed a memorandum of understanding (MOU) with the National Digital Assets Commission (CNAD) of El Salvador. The collaboration seeks to develop and regulate the use of domestic digital assets.
Faced with Bolivia’s economic challenges, the BCB also called cryptocurrencies “a viable and reliable alternative” to traditional Fiat currency. This strategic move comes as Bolivia has experienced an astounding 630% surge in domestic cryptocurrency trading. This indicates the rise in adoption and interest in digital assets.
Bolivia strengthens its crypto ecosystem with El Salvador partnership
In a press release dated July 30, Banco Central De Bolivia (BCB) revealed that the goal of this agreement is to leverage El Salvador’s expertise. The country was a pioneer in the regulation and use of digital assets. It was the first country to adopt Bitcoin as its fiat currency in 2021.
“Both entities commit to facilitating the exchange of experience and technical and regulatory knowledge on the subject, including the use of blockchain intelligence tools, risk analysis, and more within the framework of regulatory capabilities,” the press release states.
The partnership aims to help Bolivia develop a regulatory framework for crypto assets and promote a secure, regulated ecosystem that is attractive for investment. CNAD president Juan Carlos Reyes García and BCB representative president Edwin Rojas Ulo signed Mou.
“This date and indefinitely valid contracts integrate the developments made to the use of digital assets as a viable and reliable alternative to traditional currencies, especially for families and small entrepreneurs,” the bank added.
The BCB also highlighted its commitment to developing policies that modernize the Bolivian financial system. These policies are designed to enhance financial inclusion, allowing more people to access modern financial tools, including digital assets.
In addition to focusing on digital assets, the BCB focuses on maintaining economic and social stability in Bolivia. The country is tackling a serious economic crisis, according to a Reuters report.
Bolivia’s dollar reserves are thin, inflation is high at 40 years, and there is a widespread fuel shortage. In fact, these economic challenges have even lifted the cryptocurrency ban in June 2024.
This step has encouraged the adoption of cryptography. Citizens and small businesses are increasingly turning their eyes to cryptocurrencies such as tethers (USDTs) and stupid things for stability. As a result, Bolivia has seen a significant increase in virtual asset trading over the past year.
On June 27, BCB reported that the transaction has increased from $46.5 million in the first half of 2024 to $294 million for the same period in 2025, totaling $430 million since the issuance of the 2024 cryptographic ban.
This surge was driven primarily by individual users, who accounted for 86% of the transactions. This trend underscores the increasing dependence on digital assets as valuable repositories. This is because Bolivian Boliviano (Bob) has lost almost 50% of its value this year on the black market.
“The number of transactions in the financial system with virtual assets has increased by 12 times, reaching 10,193 transactions, which corresponds to BOB 611 million transactions as of May 31, 2025,” BCB said.
Bolivia’s shift to encryption is consistent with global trends. Countries such as Pakistan, South Korea and Singapore are also exploring and expanding their digital assets ecosystems.
The post-Bolivian Post partnered with El Salvador to boost the adoption of crypto amid 630% growth.
