Bolivia's crypto market booms while Chile dismisses Bitcoin

Bolivia’s cryptocurrency market has witnessed rapid growth following the repeal of a blanket ban on crypto-related activities, with increasing adoption by citizens.

The Central Bank of Bolivia reported a 112% increase in purchase and sale operations of digital assets since the policy reversal, noting it has “dynamized the national payment system.”

Over 252,000 Bolivians now hold digital assets, with transaction volumes exceeding $75 million between July and October 2024, compared to $46.4 million during the first half of the year.

Central Bank president Edwin Rojas Ulo emphasised these numbers as proof of crypto's growing impact on Bolivia’s financial ecosystem.

Meanwhile, the Central Bank of Chile has firmly rejected the idea of adding Bitcoin (CRYPTO:BTC) or other cryptocurrencies to its foreign reserve assets, citing non-compliance with IMF standards for security, liquidity, and quality.

The bank stated that foreign reserves must ensure economic stability during external shocks and dismissed cryptocurrencies as unsuitable due to their volatility and lack of regulatory clarity.

Bolivian attorneys Iver von Borries and Javier Romero Mendizabal proposed adopting Tether’s (CRYPTO:USDT) as an index for commercial and civil contracts to address the country’s dollar shortage.

Bolivia’s fixed exchange rate since 2011 has created disparities between official and parallel rates, stalling major projects due to limited access to physical dollars.

Linking USDT’s global value to Bolivia’s fiat currency could reactivate stalled projects and boost economic activity by providing more flexibility in contract pricing.

Bolivia’s expanding crypto ecosystem positions it as a potential leader in digital asset integration in Latin America, while the USDT proposal reflects innovative solutions to pressing economic challenges.

At the time of reporting, Bitcoin price was $99,728.82.