In a move to develop its cryptocurrency regulatory framework, the Central Bank of Bolivia announced the signing of a cooperation agreement with El Salvador's digital asset regulator on Wednesday. This agreement marks a crucial step towards creating a legal and technical framework for the adoption of cryptocurrencies in Bolivia. The Central Bank of Bolivia and El Salvador's National Commission of Digital Assets will work together on various cryptocurrency policy initiatives, including the development of blockchain intelligence tools, regulatory frameworks, and risk analysis models, under the terms of the newly signed memorandum of understanding. This open-ended agreement is effective immediately.
The decision to collaborate with El Salvador comes at a time when cryptocurrency use is gaining momentum in Bolivia, with digital asset transaction volumes increasing from $46.5 million in June 2024 to $294 million in June 2025, following the passage of Decree No. 082/2024, which expanded the use of crypto assets across the country. The agreement leverages El Salvador's experience as the first nation to adopt bitcoin as legal tender and establish a formal digital asset regulatory system. The National Commission of Digital Assets, established after El Salvador's 2021 Bitcoin Law, is responsible for overseeing token offerings, registering digital asset service providers, and supervising crypto-related platforms.
The agreement was signed by the Acting President of the Central Bank of Bolivia, Edwin Rojas Ulo, and the President of the National Commission of Digital Assets, Juan Carlos Reyes García, in La Paz. The two institutions will share best practices to support Bolivia's goal of building a transparent, inclusive, and well-regulated digital asset ecosystem, particularly for underserved populations. This move signals a shift in Bolivia's approach to cryptocurrency, from caution to gradual regulatory engagement.
Officials emphasized that the cooperation with El Salvador will enable Bolivia to modernize its financial infrastructure while maintaining stability and promoting innovation. The agreement aligns Bolivia with a growing number of countries exploring tailored cryptocurrency regulations in response to rapid adoption, particularly in Latin America, and reinforces El Salvador's role as a regional reference point for cryptocurrency integration at the institutional level.