Bolivia’s central bank has formally recognized cryptocurrency as a “viable and reliable alternative” to traditional currencies after signing a memorandum of understanding with El Salvador to collaborate on crypto policy development and regulatory intelligence.
The agreement, signed by Edwin Rojas Ulo, Acting President of the Central Bank of Bolivia, and Juan Carlos Reyes García, President of El Salvador’s National Commission of Digital Assets (CNAD), takes effect immediately and will remain in force indefinitely.
Under the deal, both nations will share expertise on blockchain intelligence tools, risk analysis frameworks, and regulatory best practices. The partnership is designed to modernize Bolivia’s financial system, expand access for families and small entrepreneurs, and attract investment through a regulated and secure digital asset ecosystem.
El Salvador, which made Bitcoin legal tender in 2021, is expected to provide Bolivia with critical insights on overcoming the economic and compliance challenges of nationwide crypto integration. The CNAD has played a central role in shaping El Salvador’s advanced crypto regulatory framework, which is now regarded as one of the most comprehensive in Latin America.
Bolivia’s central bank emphasized that the agreement strengthens its commitment to developing policies that deepen financial inclusion and create new opportunities for small businesses. By leveraging El Salvador’s experience, Bolivia aims to establish clear rules for virtual assets, encourage innovation in financial technology, and position itself as a competitive destination for crypto-related investment.
The move signals a major policy shift for Bolivia, where cryptocurrencies had previously faced restrictions. By embracing digital assets as part of its long-term financial modernization strategy, the country is taking a significant step toward integrating blockchain technology into its broader economic infrastructure. Meanwhile, Pakistan and El Salvador have formalized a joint agreement to deepen cryptocurrency cooperation through a strategic knowledge-sharing partnership. According to Bloomberg, Bilal bin Saqib, Pakistan’s Head of Crypto Council and special assistant to the prime minister on crypto and blockchain, recently met with El Salvador’s President Nayib Bukele in South America to finalize the pact.
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