Bolivia Takes a Bold Step with USDT Custody Service

Bolivia’s Banking Sector Welcomes Tether with Custody Service

Bolivia Embraces Crypto with New USDT Custody Service

In a significant step towards cryptocurrency adoption, Banco Bisa, a leading Bolivian bank, has launched a custody service for Tether's USDt stablecoin. This service allows clients to buy, sell, and transfer USDT, making it easier for users to manage their digital assets. 

According to the bank, customers will also be able to send USDT to family members and facilitate cross-border payments. This initiative is a crucial development in Bolivia’s evolving crypto landscape.

Regulatory Support Signals a New Era

Yvette Espinoza, a representative from Bolivia's financial regulator, Autoridad de Supervisión del Sistema Financiero (ASFI), expressed her support for the bank’s custody service. 

She emphasized that this move enables clients to engage in cryptocurrency transactions while operating within the country’s regulatory framework. This regulation helps reduce the risks associated with unsafe interactions in the crypto market. 

Franco Urquidi, Banco Bisa's vice president of business, highlighted that customers will undergo a verification process to ensure their transactions are safe.

A Shift in Bolivia’s Crypto Landscape

Historically, Bolivia had a strict stance against cryptocurrencies, banning them in 2014 to protect its national currency. However, 2024 marked a turning point as the government lifted its ban on Bitcoin and crypto payments. 

This shift allows financial institutions to engage in digital asset transactions. Since the ban was lifted, virtual asset trading in Bolivia has skyrocketed, with the central bank reporting a 100% increase in trading activity and an average monthly trading volume of $15.6 million. 

Despite these developments, the country has yet to establish a formal tax framework for crypto transactions.