Bolivia Partners With El Salvador To Accelerate National Cryptocurrency Adoption
Bolivia's Central Bank signed a memorandum of understanding with El Salvador's National Commission of Digital Assets on Wednesday. According to Cointelegraph, Bolivia called cryptocurrency a "viable and reliable alternative" to traditional fiat currencies while finalizing the partnership agreement.
The agreement between Central Bank of Bolivia Acting President Edwin Rojas Ulo and El Salvador's Digital Assets Commission President Juan Carlos Reyes García takes effect immediately. The partnership aims to modernize Bolivia's financial system and improve financial inclusion for families and small entrepreneurs. Both countries will collaborate on policy development and share cryptocurrency intelligence tools under the indefinite-duration agreement.
Bolivia's partnership with El Salvador comes as the South American nation faces a severe economic crisis. Bolivia's foreign exchange reserves have fallen 98% since 2014, dropping from $12.7 billion to just $165 million as of April 2025. The country lifted its decade-long cryptocurrency ban in June 2024, allowing banks to process Bitcoin and stablecoin transactions for the first time.
Economic Crisis Drives Bolivia's Crypto Adoption
Bolivia's currency crisis has accelerated domestic cryptocurrency adoption beyond government policy. According to FinanceFeeds, crypto transaction volumes in Bolivia surged from $46.5 million in June 2024 to nearly $294 million by June 2025. This represents a 630% increase in cryptocurrency activity as Bolivians seek alternatives to their weakening national currency.
Small businesses across Bolivia have begun accepting Bitcoin and Tether payments as the boliviano loses purchasing power. Daily USDT transaction volumes reached $600,000 in 2025, with some shops pricing goods directly in stablecoins rather than local currency. The government has also approved state energy firm Yacimientos Petrolíferos Fiscales Bolivianos to accept cryptocurrency payments for fuel imports, addressing dollar shortage challenges.
Bolivia's approach contrasts with global trends toward increased crypto regulation. We recently reported that cities like Cannes are establishing comprehensive cryptocurrency payment systems to attract tech-savvy tourists and modernize local economies. Bolivia's partnership with El Salvador represents a government-level commitment to learning from existing crypto implementation experiences.
Partnership Comes As El Salvador Adjusts Bitcoin Strategy
The Bolivia-El Salvador partnership arrives as El Salvador faces new constraints on its cryptocurrency policies. According to CCN, El Salvador recently agreed to make Bitcoin acceptance voluntary for private businesses as part of a $1.4 billion International Monetary Fund loan agreement. The IMF demanded El Salvador limit public sector Bitcoin activities and eliminate mandatory merchant acceptance requirements.
El Salvador's experience offers valuable lessons for Bolivia's cryptocurrency strategy. While El Salvador's Bitcoin adoption initially boosted tourism by 20% in 2024, the policy faced challenges including public reluctance to use volatile digital assets and technical difficulties with government-issued crypto wallets. Research showed that 92% of Salvadorans did not use Bitcoin for transactions by 2024, despite legal tender status and financial incentives.
Bolivia's partnership allows the country to learn from El Salvador's regulatory approach while avoiding some implementation pitfalls. The agreement focuses on sharing intelligence tools and policy development rather than mandating specific adoption requirements. This measured approach may prove more sustainable than El Salvador's initial mandate requiring all businesses to accept Bitcoin payments, which contributed to public resistance and international criticism from financial institutions.
The partnership positions Bolivia to develop cryptocurrency policies tailored to its specific economic conditions while benefiting from El Salvador's four years of digital asset experience. As both countries navigate relationships with international lending institutions, their collaboration represents a regional approach to cryptocurrency adoption in Latin America.
