Bolivia and El Salvador Forge Alliance for Crypto Adoption
Bolivia is making significant strides towards embracing cryptocurrencies by forming a strategic partnership with El Salvador. The Central Bank of Bolivia (BCB) and El Salvador’s National Commission of Digital Assets (CNAD) recently signed a memorandum of understanding to facilitate the exchange of expertise in digital asset regulation and blockchain technologies.
This collaboration will allow both countries to work together on important areas such as blockchain intelligence, regulatory frameworks, and risk management tools. El Salvador, under the leadership of President Nayib Bukele, has emerged as a global leader in crypto adoption. It was the first country to declare Bitcoin as legal tender and has been steadily increasing its crypto reserves through regular purchases.
Despite criticism from international organizations like the IMF, El Salvador has remained steadfast in its commitment to crypto-friendly policies. This approach has attracted the attention of companies like Tether, who have set up operations in the country.
Bolivia, inspired by El Salvador’s success, is looking to leverage this partnership to develop and implement crypto-related policies effectively. Officials believe that establishing a safe and well-regulated crypto ecosystem could attract foreign investment and drive financial innovation in the country.
The recent agreement between Bolivia and El Salvador follows a significant policy change in Bolivia in June 2024. The government overturned a longstanding ban on cryptocurrencies with the passing of Resolution 082/2024. This new regulation legalized digital assets for trading and allowed electronic payment methods to facilitate transactions.
The impact of this policy change was immediate, with crypto transaction volumes in Bolivia soaring from $46.5 million to nearly $294 million between June 2024 and June 2025. To further integrate cryptocurrencies into the economy, Bolivia authorized its national oil company, YPFB, to use digital currencies for fuel imports. This decision was a strategic move to address foreign exchange shortages and maintain fuel subsidies in the face of economic pressures.
Overall, the partnership between Bolivia and El Salvador represents a significant step forward in the adoption of cryptocurrencies in the region. By sharing expertise and collaborating on regulatory frameworks, both countries aim to create a conducive environment for crypto innovation and investment. This alliance signals a new era of cooperation and growth in the crypto space, with Bolivia poised to benefit from El Salvador’s pioneering efforts in the field.