Bolivia Partners with El Salvador to Build National Crypto Framework

Highlights:

• Bolivia signed a crypto agreement with El Salvador to improve its financial system and support digital access.
• Crypto use in Bolivia rose after the 2024 ban was lifted, with trading volume reaching 294 million by mid-2025.
• The crypto push comes as the country faces a currency crisis and prepares for a high-stakes general election.

Bolivia has signed a cooperation agreement with El Salvador to support its growing shift toward crypto adoption. The Central Bank of Bolivia and El Salvador’s National Commission of Digital Assets signed the deal this week. The memorandum takes effect immediately and has no end date. It will enable the two nations to share tools, data, and resources that will advance crypto in Bolivia.

Bolivia's top bank just called crypto "viable & reliable"! 🇧🇴 Partnering with El Salvador to accelerate adoption, modernize finance, & boost inclusion amid a currency crisis. Trading volume hit $294M in H1 2025! #Bolivia #Crypto #ElSalvador #Bitcoin #USDT #FinancialInclusion pic.twitter.com/AcOyvbcXz9

— CryptoniteUae (@CryptoniteUae) July 31, 2025

The collaboration aims to assist Bolivia in developing robust policies, enhancing the fiscal framework, and increasing the accessibility of digital finance. Central Bank Acting President Edwin Rojas Ulo signed the agreement with CNAD President Juan Carlos Reyes García. The Bolivian central bank described the move as a way to modernize the country’s financial system and promote financial inclusion. Both countries will work together on blockchain monitoring tools and policy frameworks to support crypto services.

El Salvador was the first country to make Bitcoin legal tender in 2021. Bolivia hopes to learn more about the management of crypto systems at the national level, as per the experience of El Salvador. This encompasses supervision of crypto platforms, token listing, and technical functions. The deal contributes additional energy to the crypto pivot in Bolivia, which started in June 2024 when the nation removed its decades-long ban. Locally, banks have since begun to work with Bitcoin and stablecoins.

Bolivia Partners with El Salvador to Tackle Currency Strains Through Crypto

Crypto usage in Bolivia has increased sharply since the country lifted its ban in June 2024. The central bank reported $46.8 million in crypto trading volume three months after lifting the ban. The average monthly trading volume now stands at $15.6 million, which is double the previous 18-month average. As of June 2025, total crypto volume reached $294 million.

Several economic factors are driving this rise. In March, the state-owned oil company of Bolivia was approved to accept crypto payments concerning fuel imports. This intervention solved an increasingly scarce issue of US dollars and alleviated delays in the supply chain. Meanwhile, Bolivia has seen its foreign exchange reserves decline to only $153.1 million in August 2024, compared to $12.7 billion in 2014.

Due to this crisis, some shops have begun pricing items in the USDT stablecoin, according to Paolo Ardoino, the CEO of Tether. While the boliviano remains the country’s main currency, growing numbers of people now turn to crypto to avoid further losses. The government has responded by allowing crypto to play a larger role in daily transactions.

In Bolivia, real prices in shops are displayed in USD₮.

A quietly revolutionary shift: digital dollars are powering daily life, commerce, and economic stability. pic.twitter.com/dGP7I2ipxv

— Paolo Ardoino 🤖 (@paoloardoino) June 7, 2025

General Elections Approach as Crypto Gains Policy Attention

The crypto partnership was signed weeks before Bolivia’s upcoming general election on August 17. The deal comes during a time of economic pressure and growing demand for financial reform. If no candidate receives more than 50% of the vote or secures at least 40% with a 10-point lead, the country will hold a runoff on October 19. According to prediction markets, the chances of an outright victory in the first round remain low.