Bolivia’s Central Bank and El Salvador’s Digital Assets Commission signed a deal this week to work together on crypto rules and tools. It went into effect right away and has no end date, at least based on initial reports.
According to the Memorandum of Understanding (MOU), Bolivia will tap into El Salvador’s experience as the first country to make Bitcoin legal tender. The pact aims to bring new tech and wider financial access to people who have long been left out of traditional banking.
Bolivia Turns To Crypto
Bolivia lifted its ban on digital coins in June 2024 and saw trading volume hit $47 million in just three months. That breaks down to a little over $15 million per month—twice the pace of the previous year and a half.
By June 30 of this year, total volume climbed to $294 million, according to the central bank. Many Bolivians are already using Bitcoin and stablecoins for everyday buys. Mobile wallets are popping up in markets where banks rarely reach.
The BCB and the National Digital Assets Commission of El Salvador agree on Mutual Cooperation for Development of Crypto Assets in Bolivia. Source: Bolivia Central Bank.
Reserve Crisis Drives Change
Bolivia’s foreign currency reserves fell from almost $13 billion in 2014 to only $165 million by April 2025, based on data from Trading Economics.
That shortfall has made it hard to pay for imports in dollars. Now the state oil firm, Yacimientos Petrolíferos Fiscales Bolivianos, can accept crypto for fuel buys.
Local shops are pricing goods in Tether (USDT) to keep sales steady when the peso wobbles. People are looking to stablecoins as a way to shield themselves from wild swings.
According to analysts, El Salvador’s run at Bitcoin hit speed bumps like high fees and shops that refused to take sats. Bolivia’s leaders say they’ll study those missteps.
The MOU mentions sharing software and best practices—but concrete steps are still missing. Regulators stress that consumer protections and liquidity safeguards must come first.
Bolivia will coordinate with El Salvador for a crypto framework. Image: The Tico Times.
Political Stakes Loom Large
General elections are set for August 17, with a runoff on October 19 if no one clears 50% or at least 40% plus a 10-point lead.
Based on reports from Polymarket, there’s only a 5% chance of a first-round win. That makes the vote a key moment for crypto policy.
Candidates could either double down on digital finance or slam the brakes if things go wrong. Any change in leadership could reshape the deal’s future.
Bolivia and El Salvador plan to meet regularly to review progress on regulation, tech tools, and financial inclusion. They’ll also look at ways to help families and small businesses get bank-like services through crypto, reports disclose.
Featured image from Adobe Stock, chart from TradingView
