In 2014, the Plurinational State of Bolivia, through the Central Bank of Bolivia, issued the first national resolution regarding cryptoassets, through Board Resolution No. 44/2014. Subsequently, in 2020, through Board Resolution No. 144/2020, Resolution No. 44/2014 was repealed in response to the evolution of cryptoassets. Resolution No. 144/2020 confirmed the prohibition of the use, commercialization and negotiation of cryptoassets in the national payment system and financial system, since cryptoassets were not considered legal tender.
However, following an important recommendation from the Financial Action Task Force (GAFILAT), the Central Bank of Bolivia, in coordination with the Financial System Supervisory Authority (ASFI), issued Board Resolution No. 82/2024, repealing Resolution No. 144/2020 and allowing the use, marketing and trading of crypto assets in Bolivia.
Resolution No. 82/2024 not only allows transactions, which were already being carried out in Bolivia despite its prohibition, to be carried out using electronic payment instruments of the Bolivian financial system. It also provides an alternative to Bolivian businessmen and consumers in the face of the clear and undeniable shortage of US dollars that we have experienced for more than a year.
In this context, the authorization of operations with cryptoassets opens a window for Bolivians who, in recent months, have lost confidence in the financial system, have preferred to stay away from banking and have chosen to develop their economic and commercial activities through person-to-person operations. Thus, with Resolution No. 82/2024, person-to-person operations, a main characteristic of cryptoassets, will be able to be developed in a main market and not in a parallel market, as was the case during the ban.
Despite the suspension of the ban, in the press release issued by the Central Bank of Bolivia and ASFI, these entities emphasized that transactions and operations carried out with crypto assets are the exclusive responsibility of their users and will not have state protection or supervision.
Finally, the Central Bank of Bolivia will issue the corresponding resolution to regulate these operations with cryptoassets, thus strengthening financial and commercial activities in the territory of our country.
Author:
Juan Pablo Sanchez – Senior Associate
