Central Bank of Bolivia Bans Cryptocurrencies

The Central Bank of Bolivia has moved to “ban” the use of cryptocurrencies in the country – and has issued a warning on what it sees as “risks” associated with investing in cryptocurrencies like Bitcoin (BTC).

Central Bank of Bolivia Bans Cryptocurrencies

According to the Telam news agency, the Banco Central de Bolivia (BCB) has issued a “ban” on cryptocurrencies in the country and “warned that users of this digital security” could face financial loss or become victims of “scams” – because they are by nature “unreliable”.

The bank said in an official statement:

“Since cryptocurrencies are not legal tender in Bolivia, the BCB prohibits their use as well as their commercialization and purchase due to the potential risk of causing economic losses to miners, operators and their owners.”

While the BCB does not appear to be attempting to criminalize holding or trading cryptocurrencies, it appears to be closing its doors to any businesses and brokers looking to provide money-related services.

The bank explains:

“Private initiatives related to the exploitation and commercialization of cryptographic files must not be operated through the Bolivian financial system. They are not operating under the authority of the BCB or the Financial Systems Regulator [theo quy định]. ”

BCB added another warning about the dangers of investing in crypto projects, justifying its move by claiming that its “ban” would protect the bank “from the risk of fraud and fraud” that ordinary Bolivians might face.

The Central Bank of Bolivia has previously spoken out against cryptocurrencies

Back in December 2020, after that year’s parliamentary elections, it issued a resolution to “ban the use of cryptocurrencies in the domestic market.”

This warning seems to have fallen on deaf ears, however, as many media outlets noted that social media campaigns promoting crypto-related services have been circulating in the country for the past few years since it was released.

Even as more and more governments around the world accept, or at least regulate, cryptocurrencies, Bolivia is one of the few countries that has managed to phase it out entirely.

The 2014 Central Bank Circular technically only bans banks from using cryptocurrencies and in commercial transactions or payments. But in 2017, Bolivian authorities arrested 60 people who were allegedly “taking training related to cryptocurrency investing,” according to a statement released by the country’s financial agency ASFI.

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