From “ban” to “support”: What is this country doing with Bitcoin that has investors flocking to it?

A landmark policy shift
After a long period of prohibition, Bolivia has made a historic shift in its stance on cryptocurrencies.

Specifically, in June 2024 , the Central Bank of Bolivia officially lifted the ban on Bitcoin and other cryptocurrencies .

The decision paves the way for domestic financial institutions to be allowed to conduct transactions with Bitcoin (BTC) and stablecoins, marking the beginning of a new era for Bolivia in the digital asset sector.

This is a fundamental policy change, creating the premise for more extensive developments in the future.

Strategic cooperation with pioneering countries
Following the policy openness, the Central Bank of Bolivia quickly signed an important cooperation agreement with El Salvador.

Notably, El Salvador was the first country in the world to recognize Bitcoin as legal tender , so this partnership carries great symbolic significance.

The goal of the agreement is to promote cryptocurrency adoption and jointly develop effective regulatory policies.

An important provision stressed is that the agreement is effective immediately and will remain in effect indefinitely .

A New Vision for Money
The driving force behind these dramatic changes comes from a shift in the vision of Bolivia's officials themselves.

The country's central bank no longer views cryptocurrencies as a threat and has instead issued an affirmative statement, viewing them as a viable financial solution.

In its official announcement, the bank clearly stated its position:

“…see cryptocurrencies like Bitcoin (BTC) as a credible alternative to fiat money.”

This statement shows that Bolivia is serious and believes in the potential of digital assets as a supplement, or even an alternative, to the traditional monetary system.