Bolivia's Bisa Bank launches USDT custody, relaxes crypto policies, trading volume reaches $15.6 million

In South America, Bolivia has gradually begun to relax its policies on cryptocurrency this year after implementing a complete ban on cryptocurrencies in 2014. The country's fourth largest bank, Bisa Bank, has introduced custody services for the stablecoin USDT, marking a shift from prohibition to acceptance of cryptocurrencies in Bolivia.

Bolivia Fully Bans Cryptocurrencies in 2014

As early as 2014, the Bolivian government completely banned the use of Bitcoin and other cryptocurrencies, citing the high risks associated with these decentralized currencies which could potentially harm the national fiat system and investors' interests. The Central Bank of Bolivia stated that the volatility and unregulated nature of cryptocurrencies could lead to the erosion of people's assets, hence prohibiting the circulation of all non-government-issued cryptocurrencies.

Bitcoin and Cryptocurrency Payments to be Unbanned in 2024

However, this year, Bolivia's stance has changed, and on 6/28 officially lifted the ban on Bitcoin and other cryptocurrency payments, allowing financial institutions to engage in cryptocurrency asset transactions. The Central Bank of Bolivia stated that this move aims to promote economic development and align with other Latin American countries in gradually establishing a regulatory framework for cryptocurrencies in the region.

Following the policy relaxation, the volume of digital asset transactions has significantly increased. According to a report, the average monthly cryptocurrency transaction amount from July to September this year reached $15.6 million, indicating strong market demand.

Bisa Bank Introduces USDT Custody Service with Initial Support from ASFI

The fourth-largest bank in the country, Bisa Bank, recently launched a custody service for the stablecoin USDT, allowing customers to buy, sell, and transfer cryptocurrency assets, as well as providing cross-border payment and asset transfer capabilities. Bisa Bank stated that all users would undergo strict verification processes to ensure transaction security.

The Bolivian Financial System Supervision Authority (ASFI) also expressed support for Bisa Bank's cryptocurrency custody service, believing that it complies with local regulations, helps reduce cryptocurrency market risks, and safeguards investment interests.