According to Cointelegraph, Banco Bisa, a prominent Bolivian bank, has introduced a custody service for Tether’s USDt stablecoin. This new service will enable clients to buy, sell, and transfer cryptocurrency through the bank, marking a significant step in the country's crypto adoption.
The bank's service aims to provide users with the ability to hold their assets securely, send them to relatives, and facilitate cross-border payments. Yvette Espinoza from the Autoridad de Supervisión del Sistema Financiero (ASFI), Bolivia’s financial regulator, has endorsed the initiative, emphasizing that it allows clients to conduct crypto transactions within the country's regulatory framework, thereby reducing the risks associated with unsafe interactions in the crypto market.
Franco Urquidi, Vice President of Business at Banco Bisa, highlighted that customers would undergo a verification process to ensure the safety and security of their transactions, providing them with peace of mind.
Bolivia's relationship with cryptocurrency has evolved significantly over the years. In 2014, the country banned the use of cryptocurrencies, prohibiting any currency not issued or regulated by the Bolivian government. This move was intended to protect the national currency and citizens from potential financial losses due to uncontrolled currencies.
However, Bolivia began to change its stance on crypto assets in 2024. On June 28, the country lifted its ban on Bitcoin (BTC) and other crypto payments, allowing financial entities to engage in transactions involving digital assets. The Banco Central de Bolivia stated that this decision was made to boost the economy and align the country's regulations with other Latin American crypto frameworks.
Following the lifting of the ban, the central bank reported a 100% increase in virtual asset trading, with an average of $15.6 million in crypto traded monthly between July and September. Despite this progress, Bolivia has yet to establish a formal tax framework for crypto transactions.
