Again the Central Bank of Bolivia reiterates not to be in favor of the use and commercialization of cryptocurrencies in the country. However, this does not prevent the proliferation of local advertising campaigns related to business models based on these assets.
El Banco Central de Bolivia (BCB) the entity responsible for the monetary policies that govern the South American country, made a statement this week regarding the use and marketing of cryptocurrencies within the nation, indicating that these were totally prohibited at the local level.
Central Bank of Bolivia bans cryptocurrencies in the country
According to information published by local media, the measure promoted by the financial institution is based on the lack of institutional regulatory frameworks that adequately address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the marketing and use of these assets, which in turn is based on Article 328 of the Constitution.
In order to avoid risks and fraud for the entire local population, the BCB determined through Board Resolution 144/2020 to prohibit financial institutions from using, trading and negotiating crypto-assets through the national payment system, since they are not legal tender in the South American country.
In this regard, the BCB said in a recently released statement:
“As cryptoassets are not legal tender [in Bolivia], the BCB prohibits their use, as well as their commercialization [and purchase], because they [incur] potential risks of generating economic losses to their operators and users.”
It also warned that “users of these digital digital technologies are these electronic tools that have the ability to generate, store or even process data. securities” could be exposed to financial losses or be victims of scams, precisely because in the eyes of the agency are not reliable.
Also applies to private entities
While the measure would apply to the marketing of popularly known cryptocurrencies, the BCB also spoke out to address the case of private entities interested in launching their own cryptoassets as part of their business models, on which it commented:
“Private initiatives related to the use and commercialization of cryptoassets may not be operated through the Bolivian financial system. They do not operate with the authorization of the BCB or the Superintendence of Supervision of the Financial System”.
Against cryptocurrencies since a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. time ago
This announcement recently issued by the BCB adds to the line that the entity has maintained in rejection of the marketing and use of major cryptocurrencies in the country, which actually already has a long history.
Prior to this announcement, at the end of 2020 it pronounced at the time to ban the use of cryptocurrencies locally. However, critics and enthusiasts indicate that such pronouncements have no legal effect per se, since although the BCB does not endorse the marketing of these assets in the country, this does not prevent the circulation of advertising campaigns and business models based on these assets, many of which unfortunately promote scams.
Although Bolivia does not stand out as one of the most lucrative markets for cryptocurrencies at the regional level, this does not prevent users and entities in the country from highlighting the benefits of these assets in the local economy, providing educational campaigns to guide on the proper use and the possibilities they bring with them.
- Latin America News: 1 in 4 Uruguayan executives have used crypto; users seek to reverse crypto ban in Bolivia
- This year almost tripled the number of ATM Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. ATMs in the world, Latin America is still lagging behind except El Salvador
- Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. Colombia event highlighted the benefits of the DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. sector for Latin America
Version by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash