Bolivia has partnered with El Salvador to promote cryptocurrency as a viable alternative to traditional currencies, aiming to modernize its financial system and address economic challenges amid a severe currency crisis.
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Bolivia’s Central Bank calls crypto a “viable and reliable alternative” to fiat currencies, accelerating adoption through a new bilateral agreement.
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Crypto trading volume in Bolivia has doubled since lifting its crypto ban, reaching $294 million by mid-2025.
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El Salvador’s experience as the first country to adopt Bitcoin legal tender offers Bolivia valuable insights for its crypto integration strategy.
Bolivia teams up with El Salvador to boost crypto adoption amid economic crisis. Discover how this partnership aims to modernize finance and improve inclusion.
Bolivia and El Salvador Forge Strategic Crypto Partnership
Bolivia’s Central Bank has signed a memorandum of understanding with El Salvador’s National Commission of Digital Assets to collaborate on cryptocurrency policy and intelligence sharing. This agreement aims to accelerate crypto adoption as a solution to Bolivia’s ongoing economic difficulties. The partnership focuses on modernizing Bolivia’s financial infrastructure and enhancing financial inclusion for families and small businesses.
What Does This Mean for Bolivia’s Crypto Landscape?
The collaboration leverages El Salvador’s pioneering experience as the first nation to make Bitcoin legal tender. Bolivia can benefit from El Salvador’s insights into regulatory frameworks and economic impacts, helping to mitigate potential challenges. This partnership marks a significant step in Bolivia’s transition from a crypto-ban to a pro-crypto stance, signaling a new era of financial innovation.

Source: Central Bank of Bolivia
Bolivians Increasingly Embrace Cryptocurrency
Since lifting its crypto ban in June 2024, Bolivia has seen a surge in crypto trading activity. The Central Bank reported a trading volume of $46.8 million within three months, averaging $15.6 million monthly—double the previous 18-month average. By June 30, 2025, total crypto volume soared to $294 million, reflecting growing public confidence in digital assets.
How Is Crypto Usage Impacting Daily Life in Bolivia?
Amid shortages of US dollars and import difficulties, some Bolivian shops have started pricing essentials in the stablecoin Tether (USDT). Additionally, state-owned oil and gas company Yacimientos Petrolíferos Fiscales Bolivianos has received government approval to accept cryptocurrency for fuel imports, demonstrating practical crypto adoption in critical sectors.

Source: Paolo Ardoino
Why Is Bolivia Turning to Crypto Amid Its Currency Crisis?
Bolivia faces a severe currency crisis, with foreign exchange reserves plummeting 98% from $12.7 billion in 2014 to $165 million in April 2025. The Bolivian boliviano remains the dominant currency, but concerns over its declining purchasing power have driven citizens toward more stable alternatives like the US dollar and cryptocurrencies. Crypto offers a hedge against inflation and currency devaluation.
What’s Next for Bolivia’s Political and Economic Future?
The crypto agreement arrives ahead of Bolivia’s general election on August 17, 2025. The election outcome could influence the country’s economic policies and crypto adoption trajectory. If no candidate wins outright, a runoff is scheduled for October 19. Market predictions currently assign a low probability to a first-round victory, indicating a potentially volatile political environment.
Frequently Asked Questions
How will Bolivia benefit from El Salvador’s crypto experience?
Bolivia can leverage El Salvador’s pioneering Bitcoin legal tender experience to develop effective regulations and avoid potential pitfalls, facilitating smoother crypto integration.
Why is cryptocurrency gaining popularity in Bolivia now?
With a severe currency crisis and dwindling foreign reserves, Bolivians are turning to crypto as a stable alternative to protect their purchasing power and facilitate trade.
Key Takeaways
- Strategic Partnership: Bolivia and El Salvador collaborate to accelerate crypto adoption and modernize financial systems.
- Growing Adoption: Crypto trading volume in Bolivia has doubled since lifting the ban, signaling rising public trust.
- Economic Response: Crypto is increasingly used to mitigate Bolivia’s currency crisis and dollar shortages.
Conclusion
Bolivia’s partnership with El Salvador marks a pivotal moment in its economic strategy, embracing cryptocurrency as a tool for financial modernization and inclusion. As the country navigates a severe currency crisis and a critical election, crypto adoption could play a key role in stabilizing Bolivia’s economy and empowering its citizens.