Bolivia’s Crypto Journey Gets A Lift As Country’s 4th Largest Bank Launches USDT Custody

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A country located in South America is making steady progress towards leading the way in cryptocurrency within its regional market.

In a significant development, one of Bolivia’s major financial institutions has launched a custodial service for Tether’s stablecoin (USDT), opening up an opportunity for Bolivians to invest in digital currency.

Bolivia Adopts Crypto

It’s recently been announced that Bolivia, renowned for its rich cultural tapestry, has become the most recent South American nation to embrace the use of cryptocurrencies.

In a significant move, one of the nation’s biggest banks, Banco Bisa, has established a custodial service center specifically for Tether. This development signifies the integration of cryptocurrency within the national financial system. As a result, this country joins Brazil and Argentina as their neighboring nations that have welcomed digital assets.

Bolivian Banco Bisa to launch custody services for leading #stablecoin $USDT.

Clients will be able to buy, sell and transfer the coin.

— fintech-portal (@fintech_portal) October 28, 2024

Through our custody service, Bolivians can now participate in trading USDT. This means they can purchase, sell, and store digital currency in a safe and legally compliant setting, facilitated by the bank.

Banco Bisa’s Vice President, Franco Urquidi, revealed that their newest service prioritizes security to ensure a secure platform for their customers to engage in cryptocurrency transactions.

According to Urquidi, all transactions ought to originate and end within the banking system’s account structure. This step, he stressed, provides a means of maintaining control and supervision over the transactions.

He added that Banco Bisa carries out а rigorous verification process for its clients.

Government Supports The New Service

In simple terms, the financial regulatory authority of Bolivia, known as the Autoridad de Supervision del Sistema Financiero (ASFI), has supported Bank Bisa in providing a service to safeguard cryptocurrencies.

As an analyst, I can express Yvette Espinoza’s statement as follows: I myself have learned that the new service, according to ASFI representative Yvette Espinoza, is designed to advantage Bolivians significantly. This is because it offers them a secure avenue to engage in the cryptocurrency market, all while adhering to financial regulations established to mitigate risks typically associated with cryptocurrencies.

2014 saw Bolivia prohibit the usage of cryptocurrencies, with citizens being prevented from employing digital currencies not overseen by the government.

Over the course of ten years, state officials reconsidered their stance and chose to rescind the prohibition, enabling Bolivians to participate in the worldwide trend of using cryptocurrencies just as other nations are doing.

Banco Central de Bolivia, a government-operated bank, justified their decision to change course, explaining that by doing so, they aim to harmonize Bolivia’s regulatory framework with cryptocurrency guidelines across Latin America. Their ultimate goal is to stimulate the nation’s economy by facilitating innovative investment opportunities.

Banco Central Joins The Bandwagon

Aside from Bolivia, demand for cryptocurrency is increasing in other parts of South America.

2020 saw a significant increase of 16% in the number of cryptocurrency users within the region, rising from just 6% back in 2017. This trend suggests that digital assets are steadily growing in popularity and becoming more established in South America.

For instance, Just like other countries in South America, El Salvador has chosen to adopt Bitcoin as its primary currency in an effort to strengthen its financial sector.

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2024-10-30 10:42