On the Latin American cryptocurrency map, Bolivia was falling behind. While most countries in the region have been taking steps towards regulating the bitcoin (BTC) ecosystem and other cryptocurrencies, the South American country strictly prohibited trading in these assets. He was the only one in the region who maintained such a radical position, placing it on a list with 6 others in the world (among which is also Ecuador). Although many Latin American governments continue to reject cryptocurrencies, they do not prevent citizens from making transactions. Hence the strong pressure that the Bolivian cryptocurrency community began to exert, with a view to ensuring that the resolution issued in 2020 – which in turn ratified a ban that had existed since 2014 – was repealed. They were even willing to go to the Supreme Court of Justice to obtain a response to their requests, As the Ethereum Bolivia team recounted in a Space de X. That is why the recent resolution that eliminated the ban «caught them a little by surprise.» Although they feel that their efforts, together with those of the deputy Mariela Baldivieso and many members of the community, were fundamental to the decision-making of the government of Luis Arce. It is a work of several years, as the deputy has expressed to the media. Even though the Central Bank of Bolivia (BCB) awarded its historic resolution to the advice of the Latin American Financial Action Group (GAFILAT)In this sense, it is possible that the recommendations of GAFILAT have had their influence, since this organization has certainly been demanding its members to regulate the sector. However, the actions of the Bolivian ecosystem in favor of the freedom to operate with crypto assets have also borne fruit. That explains the satisfaction expressed by Deputy Baldivieso. «We did it! I'm happy! », She wrote in X as soon as she learned about the new measure that gave Bolivians access to freely trade with bitcoin. «The management of freedom of crypto assets in Bolivia that we started years ago has had results. We have worked on the cryptoasset adoption bill in Bolivia and the Bitcoin Law. We continue at the discussion table and I hope they will be approved,» Baldivieso explained.
The resolution has advantages, but it also brought fears
According to the recently approved regulations in Bolivia, banks are allowed to carry out transactions with cryptocurrencies through authorized electronic channels and the willingness to regulate bitcoin is expressed. However, the BCB clarified that cryptocurrencies are not accepted as legal tender. Even so, the community lists the advantages of the actions announced by the BCB, and among them its contribution to the solution of the economic crisis that is making its way in the country stands out. The shortage of dollars that has plagued Bolivians since last year prevents them from having access to foreign currencies, amid the devaluation of the local currency and rising inflation. Bitcoin and other cryptocurrencies have served as an escape valve in this situation, leading many people to unregulated foreign platforms to buy crypto assets and have an alternative to protect your assets. They did this under the risk of being punished by the authorities, although the most knowledgeable turned to self-custodied wallets.
This is how Bolivian investors and traders they were exposed to the closure of their accounts or to being persecuted as suspects, if their transactions were detected to be involved with cryptocurrencies. This, during the entire time that the ban has been in force. For the members of Ethereum Bolivia, being able to operate without these fears represents a great advance, but they admit that there is still a lot of work to do. They mention among the challenges the collection of reliable statistics on the transactions that take place in the country. There are analysts and sources who have presented data that They point to the existence of some 285,000 cryptocurrency accountsbut at Ethereum Bolivia they think it is necessary to verify that information. «Having figures is important for many cryptocurrency platforms and companies to decide to set up here.» The path that is now being followed also involves the struggle to get a law passed, as a way for investors to come to the country, attracted by a legal environment that offers security and favors innovation. As reported by BitcoinDynamic, the project presented by Congresswoman Baldivieso in March follows this trend, which adds to another proposal introduced last year by lawyers Gabriel Pérez and Carlos Yupanqui Moreira. They all want legislation and have been reviewing the regulatory proposals presented in other parts of the region, to serve as a guide. And although the debate is now open to a new law that responds to the needs of the country, new fears arise: many fear that with it will come the collection of taxes. Others know, on good authority, that the government has in mind launch a central bank digital currency (CBDC) as a mechanism to maintain control.