Lawrence Damilola
Bolivia’s Banco Bisa has introduced a custody service for Tether’s USDt stablecoin, allowing customers to buy, sell, and transfer the asset within a regulated framework.
This new service marks a step forward in Bolivia’s crypto landscape, which had previously imposed strict restrictions on digital assets. Banco Bisa’s offering enables users to hold USDt and use it for various transactions, including cross-border payments and sending funds to family members.
According to Banco Bisa, Bolivia’s financial regulator, Autoridad de Supervisión del Sistema Financiero (ASFI) supports the custody service. Yvette Espinoza from ASFI stated that this initiative “allows clients to carry out crypto transactions within the country’s regulatory framework,” thereby minimizing risks associated with unregulated crypto transactions.
Banco Bisa noted that users would be required to undergo a verification process to ensure secure operations, providing what the bank describes as “peace of mind” for clients engaging in crypto-related activities.
Banco Bisa implemented pricing for the service, with the minimum purchase starting at 200 USDT and a daily transaction cap of 10,000 USDT. Transaction fees for crypto sales range between 35 to 100 bolivianos ($5 to $14.5), depending on the amount, and cross-border transfers to dollar accounts incur a fee of 280 bolivianos ($40.5).
Bolivia’s approach to cryptocurrency has evolved since its initial ban in 2014, when the government prohibited digital currencies not issued or regulated by Bolivian authorities, specifically targeting Bitcoin.
At the time, Bolivia’s central bank cited concerns over potential financial losses and the protection of the national currency as reasons for the ban. However, recent regulatory adjustments have opened the door for more formalized crypto activities.
On June 28, 2024, Bolivia officially lifted its prohibition on Bitcoin and other digital currencies, allowing financial entities to engage with these assets.
Following the policy change, Bolivia’s central bank reported a 100% increase in virtual asset trading, with an average monthly trading volume of $15.6 million recorded from July to September.
Banco Bisa’s new service aligns with these regulatory updates, offering a structured pathway for customers to participate in the growing crypto market under regulated conditions.
This development comes as Latin American nations increasingly adopt cryptocurrencies. Argentina, for example, saw an estimated $91 billion in crypto deposits between July 2023 and June 2024, attributed partly to stablecoin transactions aimed at countering economic challenges such as inflation.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
