Bolivia And El Salvador Sign Pact As Economy Wobbles

The central bank in Bolivia and the Digital Assets Committee in El Salvador A deal signed This week to work together on the rules and tools of encryption. She entered into force immediately and has no end date, at least based on initial reports.

According to Memorandum of Understanding (Memorandum of Understanding), Bolivia will benefit from the El Salvador experience as the first country to make a bitcoin tender. The agreement aims to bring new technology and broader financial access to people who have been excluded from the long time of traditional banking services.

Bolivia turns into encryption

Bolivia raised its ban on digital currencies in June 2024 and witnessed the trading volume of $ 47 million in only three months. This is slightly more than $ 15 million per month – it increases the pace of the year and a half.

By June 30 this year, the total size increased to $ 294 million, according to the Central Bank. Many Bolivians are already used Bitcoin And stablecoins to buy daily. The mobile portfolio appears in the market where banks rarely arrive.

The BCB and the National Digital Assets Commission of El Salvador agree on Mutual Cooperation for Development of Crypto Assets in Bolivia. Source: Bolivia Central Bank.

Reserve crisis change change

Foreign currency reserves in Bolivia fell from about $ 13 billion in 2014 to only 165 million dollars by April 2025, based on data from trading economics.

This deficiency made it difficult to pay for imports in dollars. Now, the government oil company, Yacimientos Petrolíferos Fiscales Bolivianos, can accept encryption to buy fuel.

Local stores are the goods of goods in Tether (USDT) to keep fixed sales when the peaso fluctuates. People look at Stablecoins as a way to protect themselves from wild fluctuations.

According to analysts, operation of El Salvador in bitcoin speeds, such as high fees and shops that refused to take Sats. Bolivia leaders say they will study these mistakes.

The Memorandum of Understanding mentions the participating software and best practices – but the concrete steps are still missing. The organizers emphasize that consumer protection and liquidity guarantees should come first.

Bolivia will coordinate with El Salvador for a crypto framework. Image: The Tico Times.

Political risks waved on the horizon

The general elections were determined on August 17, with a flow on October 19 if one or at least 50 % was wiped in addition to 10 points.

Based on reports from PolymarketThere is only 5 % chance to win the first round. This makes voting a major moment of encryption policy.

Candidates can either weak in digital financing or criticize brakes if things get worse. Any change in driving can reshape the future of the deal.

Bolivia and El Salvador plans to meet regularly to review the progress made in organization, technology tools, and financial inclusion. They will also search for ways to help families and small companies get bank -like services through Crypto, as reports are revealed.

Distinctive image from Adobe Stock, the tradingview chart

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