In a move that could mark a significant change in the Bolivian economy, a congresswoman has presented a bill to lift the ban on cryptocurrencies in the country. This proposal has sparked a broad debate about the benefits and risks of legalising these digital currencies in the Bolivian economic and financial context.
Mariela Baldivieso, a deputy from the Comunidad Ciudadana (CC) party, “is leading an effort to legalise cryptocurrencies in Bolivia and have the government establish specific regulations for their use.” [1]
The goal, according to the deputy, is to aim for economic improvement and lead Bolivia towards a more inclusive technological and digital era. Additionally, the legislative proposal seeks to primarily abolish the current prohibition of crypto assets in the country, aligning with international standards.
Until now, Bolivia has maintained a restrictive stance towards cryptocurrencies, prohibiting their use and trade within the national territory. This stance has been reiterated on multiple occasions by the Central Bank of Bolivia (BCB) and some government officials.
In fact, “In 2022, the Central Bank of Bolivia issued a warning on its website and social media platforms, highlighting the high volatility. It even pointed out fraud risks for customers, illustrating the alert with examples of Bitcoin (BTC) and Ethereum (ETH).”[2]
This is why the bill seeks to legalise the use of cryptocurrencies in Bolivia, for which the government will have to establish the respective norms to regulate digital assets such as cryptocurrencies.
In addition to promoting innovation and technological development in the country, providing citizens with a new option for more efficient and secure financial transactions, the congresswoman believes that regulating crypto assets could have positive effects on the country’s dollar scarcity problems.
“The use of digital instruments like crypto assets could serve as an outlet to channel economic flow.” [3]
The proposed bill has generated divided opinions among experts in economics and citizens. While some see it as a unique opportunity to boost the economy and financial inclusion in Bolivia, others fear the associated risks and advocate for strict regulations to ensure the security and transparency of cryptocurrency use. That’s why the deputy invited representatives from the public and private sectors, as well as crypto experts, to join the initiative.
Supporters of the bill argue that legalising cryptocurrencies could bring significant benefits to the Bolivian economy. Among them, they highlight the possibility of attracting foreign investments in the technology sector, facilitating access to financial services for the unbanked population, and fostering the creation of new businesses and jobs related to blockchain technology.
Currently, the proposal is backed by organisations such as “Asociación Blockchain Bolivia, Comunidad Bitcoin Bolivia, Comunidad Ethereum Bolivia, Startups Bolivia, Cámara Fintech Bolivia, and other local entities that are part of the digital currency ecosystem.” [4]
The proposed bill to lift the ban on cryptocurrencies in Bolivia represents a momentous decision for the country’s economic future. As the congresswoman mentioned, this proposal “represents an opportunity to drive economic development and make Bolivia a relevant player in the digital evolution that is transforming the way we interact with finances and commerce.” [5]
The debate on the legalisation of cryptocurrencies in Bolivia is ongoing, and it will be crucial for both lawmakers and citizens to work together to define a solid and clear policy.
________________
[1] https://es.beincrypto.com/diputada-impulsa-regulacion-criptomonedas-bolivia/
[2] https://es.beincrypto.com/diputada-impulsa-regulacion-criptomonedas-bolivia/
[3]https://www.diariobitcoin.com/paises/sur-america/bolivia-diputada-proyecto-ley-criptomonedas/
[4] https://www.diariobitcoin.com/paises/sur-america/bolivia-diputada-proyecto-ley-criptomonedas/
[5] https://www.diariobitcoin.com/paises/sur-america/bolivia-diputada-proyecto-ley-criptomonedas/
