Bolivia relaxes cryptocurrency restriction to address dollar and fuel shortages. This approach attempts to help Bolivia’s economic development.
President Luis Arce finally disclosed the reason for Bolivia’s decision to suspend its crypto prohibition, which had been in effect since 2020, as the country’s dollar and fuel shortages.
Arce declared that its administration is endeavoring to ease the shortage of foreign currency that has impacted the nation as a result of the decline in gas exports, which are its primary source of revenue until 2021. He regards cryptocurrencies as a potential remedy to Bolivia’s macroeconomic challenges.
The Central Bank of Bolivia (BCB) permitted the utilization of virtual assets via Electronic Payment Instruments (EPI) on June 26, according to BeInCrypto. The president of the BCB, Edwin Rojas, clarified that this new regulation will facilitate the establishment of electronic payment channels and instruments for the purchase and sale of virtual assets. Nevertheless, Rojas emphasized that the boliviano is the sole legal currency in the country, as specified in Law 901 of 1986.
No obligation exists for the public to receive a virtual asset as a form of payment, as it is not legal tender or currency. Consequently, the consumers of these assets will be responsible for the inherent dangers associated with their use and trading, as stated in the official announcement of the BCB.
In order to facilitate this transition, the BCB implemented an extensive training program on July 2 to provide education to a variety of sectors regarding virtual assets. Educating journalists from key locations is the primary objective of the initial phase.
The endeavor guarantees the precise dissemination of public information regarding virtual assets. This comprises conceptual factors, characteristics, regulatory issues, security, and dangers.
This initiative is a component of the BCB’s overarching endeavor to improve the public’s comprehension of emerging financial technologies. Furthermore, the central bank endeavors to facilitate the modernization of the nation’s economy.
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