Bolivia Partners with El Salvador to Expand Crypto Adoption

Bolivia is rapidly emerging as a hub for cryptocurrency adoption, bolstered by a new international partnership with El Salvador. On Wednesday, the Central Bank of Bolivia (BCB) signed a memorandum of understanding with El Salvador’s Comisión Nacional de Activos Digitales (CNAD) to foster the growth of digital assets in the country. This agreement, effective immediately, aims to create a robust framework for cryptocurrencies as Bolivia experiences a surge in crypto transactions amid tightening access to U.S. dollars. The collaboration signals a transformative shift in how Bolivians engage with financial systems, leveraging blockchain technology to modernize the economy.

The partnership, formalized in La Paz by BCB Acting President Edwin Rojas Ulo and CNAD President Juan Carlos Reyes García, focuses on sharing expertise in blockchain intelligence, regulatory policy, and risk management. By aligning with El Salvador, a country who leads in cryptocurrency adoption, Bolivia aims to develop a secure and innovative digital asset ecosystem. The open-ended agreement emphasizes technical know-how and best practices, positioning Bolivia to navigate the complexities of crypto integration effectively. This move comes at a pivotal moment, as Bolivia’s financial landscape evolves to meet the demands of a digital economy.

Surge in Crypto Adoption

Bolivia’s crypto market has seen explosive growth, with crypto related transactions skyrocketing from $46.5 million in June 2024 to $294 million by June 2025, according to BCB data. This surge followed the introduction of Decree No. 082/2024, which lifted a long-standing ban on digital currencies and allowed banks to facilitate transactions in Bitcoin and stablecoins. The policy shift has enabled financial institutions to embrace cryptocurrencies, making them more accessible to everyday Bolivians. In May 2025 alone, monthly crypto transactions reached a record $68 million, reflecting widespread adoption.

The rise in crypto usage coincides with economic challenges, including a depreciating local currency and limited access to U.S. dollars. Many Bolivians are turning to stablecoins such as Tether for financial transactions, seeking stability and efficiency during US Dollar and gas shortages. The BCB’s efforts to modernize the financial system through crypto-friendly policies aim to improve financial inclusion, particularly for underserved populations. By integrating digital assets, Bolivia is addressing longstanding barriers to accessing traditional banking services.

El Salvador’s CNAD, recognized globally for its leadership in digital asset regulation, serves as a strategic partner in this endeavor. The commission’s expertise in promoting innovation, security, and compliance provides Bolivia with a blueprint for sustainable crypto growth. The collaboration underscores Bolivia’s commitment to aligning with international standards while tailoring solutions to its unique economic context. As cryptocurrencies gain traction, this partnership could pave the way for Bolivia to become a regional leader in digital finance.

The agreement also reflects broader trends in Latin America, where countries are increasingly exploring cryptocurrencies to address economic instability. Bolivia’s proactive approach, supported by El Salvador’s experience, positions the country to capitalize on the benefits of digital assets. By fostering a legal and technical framework, the BCB aims to ensure that crypto adoption is both secure and inclusive. As the partnership unfolds, it could redefine Bolivia’s financial landscape.