Bolivia’s central bank signed a memorandum of understanding with El Salvador on July 30 to develop a legal and technical framework for crypto adoption.
By Bhushan Akolkar
Editor Hamza Tariq
Updated
2 mins read
On July 30, Bolivia’s central bank entered into a formal agreement with El Salvador seeking help to develop the legal and technical framework for crypto adoption in the country. By being the first country to make Bitcoin BTC $115 998 24h volatility: 2.1% Market cap: $2.31 T Vol. 24h: $50.96 B a legal tender, El Salvador has set a precedent.
While signing the memorandum of understanding (MoU) with El Salvador for crypto adoption, the Bolivian central bank refers to crypto as a “viable and reliable alternative.”
As a part of the agreement, the two countries will share crypto intelligence tools, collaborate on policy development, with the goal of modernizing Bolivia’s financial system.
The agreement, signed by Central Bank of Bolivia Acting President Edwin Rojas Ulo and CNAD President Juan Carlos Reyes García of El Salvador, takes effect immediately and will remain in force indefinitely.
The latest agreement highlights a strong change from the long-standing crypto ban in the country, before 2024. Last year, Bolivia pivoted to a pro-crypto policy while allowing local banks to facilitate BTC and stablecoin transactions.
Three months after lifting its crypto ban, Bolivia’s central bank reported a trading volume of $46.8 million, averaging at $15.6 million per month. This is twice the monthly average during the previous months.
This growth has continued into 2025, with total crypto trading volume reaching $294 million by June 30, according to a letter from the Central Bank of Bolivia.
In March, state-owned oil and gas company Yacimientos Petrolíferos Fiscales Bolivianos received government approval to begin accepting cryptocurrency for fuel imports. This move comes amid the country’s ongoing shortage in USD reserves and import constraints.
Amid Bolivia’s fragile economic conditions, local businesses have started accepting Tether’s USDT stablecoin as payment, indicating a growing reliance on stablecoins as a way to cope with the ongoing currency crisis.
Following its Bitcoin adoption and legal tender move in 2021, El Salvador faced severe opposition from global institutions like the IMF. However, the country stood its ground by adding 1 BTC every day and building its BTC treasury.
This strategy has also helped the country reduce its debt burden and boost its economy. In May, El Salvador managed to secure a $125 million IMF loan, despite skepticism about its Bitcoin strategy.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.