El Salvador to help Bolivia embrace crypto to boost economic growth

Bolivia is taking a major step toward embracing cryptocurrencies by forming a strategic alliance with El Salvador.

On July 30, the Central Bank of Bolivia (BCB) and El Salvador’s National Commission of Digital Assets (CNAD) signed a memorandum of understanding to support the exchange of expertise in digital asset regulation and blockchain technologies.

This partnership will enable both countries to collaborate on key areas such as blockchain intelligence, regulatory frameworks, and risk management tools.

El Salvador, led by President Nayib Bukele, has become a global example of crypto adoption. It was the first country to make Bitcoin legal tender and has continued to expand its crypto reserves through daily purchases.

While international bodies like the IMF have criticized these steps, El Salvador has mostly maintained its course by implementing new pro-crypto regulations. These actions have attracted crypto firms like Tether to the Central American country.

Bolivia’s crypto ecosystem

Bolivia aims to use the El Salvador experience to implement and oversee crypto-related policies. Officials say the agreement is part of a broader effort to build safe, well-regulated crypto ecosystems that could attract foreign investment and promote financial innovation.

Bolivian authorities highlighted the growing relevance of digital assets in cross-border transactions and acknowledged the value of El Salvador’s early adoption of crypto in shaping their own policy path.

The partnership follows a significant policy change in Bolivia. In June 2024, the government passed Resolution 082/2024, overturning a long-standing crypto ban.

The new regulation legalized digital assets for trading and allowed electronic payment methods to support transactions.

As a result, Bolivia saw a surge in crypto activity. Transaction volumes jumped from $46.5 million to nearly $294 million between June 2024 and June 2025.

To further integrate crypto into its economy, Bolivia authorized its national oil company, YPFB, to use digital currencies for fuel imports. The decision helps manage foreign exchange shortages and maintain fuel subsidies amid economic pressures.

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