- Bolivia has signed a partnership agreement with El Salvador on crypto matters.
- El Salvador and Bolivia will share technical and legal expertise on crypto-related issues.
- The agreement between Bolivia and El Salvador will enhance the former’s national development.
Bolivia and El Salvador have signed a deal to collaborate on expanding cryptocurrency adoption between themselves.
In a strategic move, the Bolivian Central Bank (BCB) and El Salvador’s National Digital Assets Commission (CNAD) signed a Memorandum of Understanding (MoU) to formalize the partnership between the two Latin American nations.
Crypto adoption grew in Bolivia last year
This partnership comes as Bolivia has experienced a massive surge in cryptocurrency adoption. The volume of crypto transactions in the country exploded from $46.5 million to $294 million over the past year, a huge increase that followed the implementation of the country’s first crypto regulatory framework in 2024.
Arguably, the R.D. No. 082/2024 regulatory framework has helped Bolivia to structure its digital asset landscape, providing investors and industry participants with a clearer perspective of regulatory requirements within the region. The country now views this partnership with El Salvador as a crucial next step toward national development and economic resilience.
Bolivia now taps El Salvador’s pioneering experience
In the meantime, it is worth noting that the agreement between Bolivia and El Salvador will involve cooperation and information sharing on crypto and blockchain matters.
Juan Carlos Reyes García from CNAD and Edwin Rojas Ulo from BCB signed the memorandum. It is an open-ended partnership which begins immediately with no expiry date. Meanwhile, Bolivia expects to benefit from El Salvador’s experience with regulations and the use of digital assets.
Details of the MoU between the countries reveal that they will exchange technical and legal expertise and also share blockchain intelligence and risk analysis methods. However, the regulatory capacities of both institutions involved in the partnership will be considered during decision-making.
Related: Dollar-strapped Bolivia turns to crypto to pay for fuel, shifts global trade norms
Bolivia considers the latest move as a step forward in national development. The nation looks up to El Salvador as a more experienced partner on blockchain and crypto affairs, expecting to leverage that experience to construct its local guidelines. In the meantime, developing a robust crypto ecosystem in Bolivia will benefit the country’s local economy and enhance financial inclusion for small businesses and households.
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