Bolivia’s central bank, Banco Central de Bolivia, has decided to remove its ban on Bitcoin and cryptocurrency payments. The bank’s decision aims to modernize the country’s system and improve its struggling economy, while also bringing it in line with Latin American crypto regulations.
The change in stance marks the end of a ban on crypto use was put in place in 2014. Although banks are now allowed to transact in cryptocurrencies via approved electronic channels, the central bank emphasized that cryptocurrencies are not considered legal tender by the Bolivian government. Companies are not required to accept them as payment either.
In conjunction with this regulatory update, Banco Central de Bolivia to launch an awareness program as part of its Economic and Financial Education Plan. The program will educate the public about potential risks associated with cryptocurrencies and to handle them responsibly.
This new legislation was developed collaboratively with the Financial Investigations Unit, the Financial System Supervisory Authority, became effective on June 26.
Additionally, this move aligns Bolivia’s crypto regulation with suggestions from the Latin American Financial Action Force. This trend is seen across several Latin American nations which have been embracing Bitcoin and as an alternative economic solution for their struggling economies due to rising inflation. For instance:
– El Salvador adopted Bitcoin as legal tender alongside the U.S. dollar.
– Mexico does not recognize cryptocurrency as legal tender but accepts it for value transfers and payments.
– Brazil introduced income-tax regulations allowing a 15% tax on crypto profits by centralized exchanges in 2023
– Argentina elected a pro-Bitcoin president amidst rampant inflation.
The article also touches briefly on other countries’ stances toward cryptocurrency: Japan sets record highs for Bitcoin use; Argentina sees increased adoption; Mexico taxes profits from centralized exchange sales; Brazil introduces income-tax regulations; El Salvador becomes first country to adopt Bitcoin as legal tender.
Finally, it discusses how these developments have led some observers Godzilla vs Kong magazine comparing SEC’s challenges during crypto regulation battles akin fighting against powerful creatures popular culture such movie Godzilla vs Kong