Bolivia is seeing a surge in cryptocurrency trading after the central bank lifted a long-standing ban on using banking channels for cryptocurrency trading. Cryptocurrency trading volume more than doubled in the three months following the change due to increased demand for stablecoins. A significant surge in cryptocurrency trading after Bolivia lifted its ban signals a renewed interest in digital currencies.
Cryptocurrency revival in Bolivia: A new era begins
The lifting of Bolivia’s cryptocurrency ban in June 2024 led to a notable increase in digital asset activity in the country. This is a clear indicator that cryptocurrency trading has surged since Bolivia lifted its ban. Data from the Central Bank of Bolivia showed that trading volume increased by more than 100% in the months following the policy change. From July to September 2024, cryptocurrency transactions in the country amounted to $15.6 million, a significant increase from the average of $7.6 million recorded in the previous 18 months.
In the period from July to September 2024, cryptocurrency activity reached $46.8 million, surpassing all previous transactions for that year. Most of these transactions involve stablecoins, digital tokens pegged to the value of the U.S. dollar. This reflects the continued surge in cryptocurrency transactions since Bolivia lifted its ban.
Increasing number of transactions
As trading volume soared, cryptocurrency trading also increased rapidly. Bolivia recorded 374,500 transactions between July and September, compared to 155,300 transactions in the previous six months. This is a 141% increase in the number of operations, reflecting increased cryptocurrency adoption in the country following a surge in cryptocurrency trading after Bolivia lifted its ban.
In total, Bolivia processed 1,123,000 cryptocurrency transactions from July to September, surpassing the 932,000 transactions in the first half of 2024. Financial institutions also reported a 40% increase in the use of digital methods to buy and sell cryptocurrency assets.
The road to greater adoption
Bolivia’s central bank governor, Edwin Rojas Ulo, emphasized the bank’s role in promoting cryptocurrency adoption. “We are paving the way for the use of cryptocurrency assets in Bolivia. “With cryptocurrency transactions surging after Bolivia lifted its ban, our country is taking great strides toward a more digital economic future.”
Rojas Ulo also praised the use of stablecoins in Bolivia, emphasizing their importance as a viable alternative to the US dollar in local transactions.