Juan Pablo Sanchez – Senior Associate
In 2014, the Plurinational State of Bolivia, through the Central Bank of Bolivia, issued the first national resolution regarding cryptoassets via Board Resolution No. 44/2014. Later, in 2020, through Board Resolution No. 144/2020, Resolution No. 44/2014 was revoked in response to the evolution of cryptoassets. In this sense, Resolution No. 144/2020 confirmed the prohibition of the use, commercialization, and trading of cryptoassets in the national payment system and financial system, as cryptoassets were not considered legal tender.
However, following a significant recommendation from the Financial Action Task Force of Latin America (GAFILAT), the Central Bank of Bolivia, in coordination with the Financial System Supervision Authority (ASFI), issued Board Resolution No. 82/2024, revoking Resolution No. 144/2020 and allowing the use, commercialization, and trading of cryptoassets in Bolivia.
Resolution No. 82/2024 not only permits operations that were already taking place in Bolivia despite the prohibition, but it also allows these operations to be conducted through electronic payment instruments of the Bolivian financial system. Additionally, it provides an alternative for Bolivian entrepreneurs and consumers, amidst the clear and undeniable shortage of U.S. dollars that we have experienced for over 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, preferred to stay away from banking, and opted to conduct their economic and commercial activities through peer-to-peer operations. Thus, with Resolution No. 82/2024, peer-to-peer operations, a primary feature of cryptoassets, can now be conducted in a main market rather than in a parallel market, as was the case during the prohibition.
Despite the suspension of the prohibition, through the press release issued by the Central Bank of Bolivia and ASFI, these entities emphasized that transactions and operations conducted with cryptoassets are under the sole 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, thereby strengthening financial and commercial activities within our country’s territory.
