Latest news with #CentralBankofBolivia
Coin Geek
11-08-2025
- Business
- Coin Geek
Bolivia taps El Salvador for guidance; Algeria bans 'crypto'
Getting your Trinity Audio player ready... The South American nation of Bolivia lifted its decade-long ban on digital assets a year ago, and since then, trading has skyrocketed. It's now seeking to regulate the sector and has tapped neighboring El Salvador for guidance. While Bolivia warms up to digital assets, Algeria is moving in the opposite direction. The North African country has announced a sweeping ban on 'crypto,' criminalizing all digital asset activities. Bolivia taps El Salvador for 'crypto' guidance The Central Bank of Bolivia (BCB) has signed a Memorandum of Understanding (MoU) with El Salvador's National Commission for Digital Assets (CNAD) to share knowledge and exchange regulatory and technical expertise. The MoU took effect immediately and will remain in force indefinitely, the two revealed in their announcement. The regulators will share their experience in blockchain intelligence tools, data analytics, risk analysis, and market oversight. They'll also jointly train their staff and exchange information on virtual asset service providers (VASPs) operating in both countries. BCB Acting President Edwin Rojas Ulo, who signed the agreement with CNAD's Juan Carlos Reyes García, says it's part of the Bolivian government's ongoing efforts to promote digital asset adoption in the country. However, Bolivia is keen to ensure this growth is within the existing legal framework and protects investors while preserving monetary stability. CNAD reiterated its commitment to promoting digital assets in the region, with Garcia pledging the agency's support to any South American country expanding its 'crypto' presence. El Salvador was the first country globally to adopt BTC as legal tender (although it didn't pan out as President Nayib Bukele expected); Garcia says this has equipped it with experience in managing digital assets, and it's willing to lend this expertise to its neighbors. The MoU is Bolivia's latest effort to boost digital asset adoption after lifting its decade-long ban in June 2024. While announcing the ban in 2014, it claimed it was protecting its official currency, boliviano, from depreciation and preventing 'crypto' use in illegal activities like money laundering and tax evasion. Ten years later, the government changed tune as adoption peaked in other Latin American nations like Argentina, Brazil, Venezuela, and El Salvador. According to BCB data, digital asset transactions soared over 500% in the first six months of this year to hit $294 million. Source: BCB Digital assets 'have facilitated access to foreign currency transactions, including remittances, small purchases and payments, benefiting micro and small business owners across various sectors, as well as families nationwide,' the central bank said. For Bolivians, digital assets offer the best alternative amid a steep depreciation of the local currency and peak inflation. This year alone, the boliviano has lost half its value against the USD in the black market, with official dollar reserves plummeting to near zero. Algeria bans digital assets As Bolivia opens up to digital assets, Algeria is heading the other way. The North African nation has enacted a new law that criminalizes any use, exchange or mining of digital assets. According to a local report, the crackdown was enacted through Law No. 25-10 of July 24, 2025, and takes effect immediately. Under Article 6A, Algerians are prohibited from issuing, purchasing, selling, possessing, using, or promoting digital assets. It's also illegal to develop or operate trading platforms or digital wallets, individually or through third-party online platforms. Beyond trading, Algeria has also banned block reward mining. The country's mining activities are insignificant compared to other African countries like Ethiopia, but it is gaining ground in the southern provinces where electricity is much cheaper. Algerians who violate the new law face a prison sentence not exceeding one year, a fine ranging from 200,000 dinars ($1,500) to 1 million dinars ($7,700), or both. These penalties could be heightened if the 'crypto' usage is linked to other forms of organized crime, like money laundering. The new ban was unexpected and bucks a global trend where governments are racing to enact the friendliest laws to boost adoption and attract global capital. It also comes against the backdrop of rapid adoption in Algeria. According to a Chainalysis report last September, the country was the fourth-fastest growing by value received in the Middle East and North Africa (MENA) region, outpacing titans like the United Arab Emirates, Israel, and Egypt. Source: Chainalysis Watch: Is your company ready to ride the wave of blockchain adoption? title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
31-07-2025
- Business
- Yahoo
Bolivia Looks to El Salvador for Help Building Its Crypto Regulatory Framework
On Wednesday, Bolivia's central bank announced that it had signed a formal agreement with El Salvador's digital asset regulator, marking a significant step toward developing a legal and technical framework for cryptocurrency adoption in the Andean nation. The Central Bank of Bolivia (BCB) and El Salvador's Comisión Nacional de Activos Digitales (CNAD) will collaborate on a broad range of crypto policy initiatives under the terms of a newly signed memorandum of understanding. The agreement includes joint work on blockchain intelligence tools, regulatory frameworks, and risk analysis models. It is open-ended and takes effect immediately. The policy shift comes as crypto use accelerates in Bolivia. According to figures released by the BCB, digital asset transaction volume grew from $46.5 million in June 2024 to $294 million in June 2025, a more than sixfold increase following the passage of Decree No. 082/2024, which authorized broader use of cryptoassets across the country. The new agreement draws on El Salvador's experience as the first country to adopt bitcoin as legal tender and build a formal digital asset regulatory system. The CNAD, established after El Salvador's 2021 Bitcoin Law, oversees the authorization of token offerings, the registration of digital asset service providers, and the supervision of crypto-related platforms. BCB Acting President Edwin Rojas Ulo and CNAD President Juan Carlos Reyes García signed the agreement in La Paz. The two institutions will share best practices aimed at supporting Bolivia's goal of building a transparent, inclusive, and well-regulated digital asset ecosystem, particularly for populations underserved by traditional finance. While Bolivia has historically taken a cautious stance on crypto, the agreement signals a move toward gradual regulatory engagement rather than restriction. Officials emphasized that cooperation with El Salvador will help Bolivia modernize its financial infrastructure while safeguarding stability and promoting innovation. The deal aligns Bolivia with a growing number of countries exploring tailored crypto regulations in response to rapid adoption, especially in Latin America. It also reinforces El Salvador's role as a regional reference point for crypto integration at the institutional level. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
