Highlights:
- Banco Bisa offers Bolivia’s first regulated USDT service, enhancing security.
- Crypto transactions in Bolivia grew 141% after lifting the 2014 ban.
- South American crypto adoption spikes, led by Argentina’s $91B in inflows.
Banco Bisa, a major Bolivian bank, has launched a stablecoin custody service for Tether’s USDT. The move comes as cryptocurrency adoption rises across South America. The service will allow Bolivians to buy, sell, or transfer USDT as digital assets gain broad interest among the citizens. Banco Bisa’s initiative offers a secure way for users to engage in digital transactions under a regulated framework.
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🇧🇴 JUST IN: Bisa Bank, one of the largest banks in Bolivia, has enabled customers to buy, sell, and store $USDT. pic.twitter.com/vaLX5z1uqH
— Lib (@lib_an1) October 28, 2024
Franco Urquidi, Vice President of Business at Banco Bisa, emphasized the importance of security. Transactions occur through Banco Bisa accounts, ensuring customer protection. Users have to go through verification steps. This gives confidence to the parties in transaction safety. The convenience and reliability of the approach appeal to Bolivians who want a reliable way into digital Finance.
Bolivia’s Regulatory Framework
In June 2024, the Central Bank of Bolivia lifted its crypto ban, which it had put in place in 2014. The earlier ban blocked all forms of currencies that had not been directly issued by the Bolivian government which limited the use of cryptocurrencies. Banco Bisa’s new service now adheres to updated Bolivian regulations. Financial institutions can finally support legal cryptocurrency transactions for the first time.
Yvette Espinoza from the Financial System Supervision Authority (ASFI) has endorsed Banco Bisa’s regulated service. Espinoza has stated that the service will help reduce market risks.
Banco Bisa enhances data security for users by partnering with international custody and exchange firms. The regulated setup allows for safe access to the cryptocurrency market by Bolivians and avoids risks from unregulated exchanges.
Rising Demand for Digital Assets
The lift of the ban on cryptocurrencies earlier this year has led to increased interest from its citizens. According to the Central Bank of Bolivia, between July and September, the crypto trade volume per month reached $15.6 million on average. After the ban was lifted, Bolivians conducted over one million transactions in three months, marking a 141% increase.
Banco Bisa’s service meets the needs of Bolivians seeking safe and affordable digital options. USDT’s stability allows customers to store value and make secure payments abroad. The bank requires a minimum transaction of 200 USDT. Transaction costs vary between 35 and 100 bolivianos. A lot of Bolivians currently depend on this service to assist family members living overseas and fulfill financial requirements across borders.
Crypto Adoption in South America
According to data from Chainalysis, South America is among the leading regions in crypto adoption. Argentina leads crypto adoption across the region, with $91 billion in the most recent crypto transactions. With high inflation and economic challenges, Argentinians have turned to digital currencies as an alternative store of value. With price stability provided by stablecoins, especially USDT, they are becoming increasingly popular.
In our next 2024 Geography of Crypto Report preview chapter, we look at crypto adoption in Latin America. Read to learn more about crypto markets in Brazil, Argentina, Venezuela & the Caribbean. Featuring insights from @circle @BTGPactual @AaronWStanley: https://t.co/sPVXseFsuf pic.twitter.com/g0w9M7cvqy
— Chainalysis (@chainalysis) October 9, 2024
Brazil also ranks high in crypto adoption due to significant institutional interest. Venezuelans have turned to crypto as an alternative currency to combat economic instability. Across South America, stablecoins provide a stable option for citizens facing inflation and financial uncertainty. Banco Bisa’s USDT service reflects a broader regional trend, connecting Bolivia to the growing South American crypto ecosystem.
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