Bolivia lifts ban on Bitcoin, legalises crypto transactions

The cryptocurrency segment has grown rapidly in the last few years. El Salvador gave Bitcoin legal currency status about three years ago. However, the crypto segment was also banned in some countries. One of these countries, Bolivia, has lifted the ban imposed on Bitcoin about a decade ago. Its aim is to balance the country’s economy and modernize the payment systems.

Bolivia in Latin America Crypto has become the first country to take steps in favor of Bitcoin. However, its Central Bank has not given legal currency status to Bitcoin or other cryptocurrencies. The Central Bank of Bolivia has also allowed banks to do crypto transactions. Banco Central de Bolivia said that it is withdrawing the ban imposed on payments from cryptocurrencies, including Bitcoin payments. Debt in this country is expected to increase to more than $ 21 billion by 2029. Banco Central de Bolivia has decided to allow banks to use electronic channels of acceptance and provide facilities for crypto payments.

However, Bolivia’s central bank has not recognized bitcoin or other cryptocurrencies as legal currency. Allowing crypto transactions can help it receive more money through remittances as these transactions from abroad do not cause delays and usually do not attract any charges. Bolivia is also trying to reduce its dependence on the US dollar. In the last few months, the US Federal Reserve has raised interest rates to recover the economy. Last year, Bolivia had emphasized on the Chinese Yuan and the Russian Ruble to reduce the dominance of the US dollar.

El Salvador became the first country to give Bitcoin the status of a legal currency about three years ago. El Salvador’s President Nayib Bukele is making efforts to increase the use of Bitcoin in his country. In the last few years, Brazil has also taken steps in favor of cryptocurrencies. Brazil has also created a separate unit for speedy investigation of crypto-related crimes. This unit will also work to increase awareness about the crypto segment.