La Paz / San Salvador – August 2025 — In a landmark move signaling Latin America’s growing alignment with digital finance, Bolivia has formalized a strategic partnership with El Salvador to advance its national approach to cryptocurrency regulation and integration.
The Central Bank of Bolivia (BCB) has signed a memorandum of understanding (MoU) with El Salvador’s National Commission for Digital Assets (CNAD), aiming to tap into the latter’s real-world experience in creating and enforcing crypto legislation. The agreement, which outlines open-ended cooperation between the two nations, was signed by Juan Carlos Reyes García, President of CNAD, and Edwin Rojas Ulo, Acting President of the BCB.
A Knowledge Exchange on Crypto Governance
The partnership establishes a framework for ongoing exchange of technical expertise, regulatory strategies, and blockchain intelligence tools, with a focus on risk assessment and policy implementation. Notably, the MoU has no expiration date, reflecting a long-term commitment to cooperation in navigating the rapidly evolving digital asset space.
For Bolivia, the move signals a serious pivot toward formalizing its cryptocurrency landscape. It comes at a time when the country is seeking to modernize its financial system and shore up confidence amid growing macroeconomic pressures.
Economic Headwinds Prompt Digital Currency Exploration
Bolivia’s interest in cryptocurrency is growing in tandem with its economic challenges. The country’s foreign exchange reserves have plunged dramatically, falling from US$12.7 billion in 2014 to just US$165 million as of April 2025. This sharp decline has led to liquidity concerns, inflationary pressure, and growing interest in alternative financial solutions.
In some parts of the country, merchants have begun quoting prices in Tether (USDT), a U.S. dollar-pegged stablecoin, as highlighted by Tether CEO Paolo Ardoino in a recent post on X (formerly Twitter). This grassroots shift underscores both the demand for stable digital currencies and the urgency of crafting a formal regulatory response.
Bolivia’s Evolving Crypto Landscape
The MoU builds on momentum sparked by Decree 082/2024, a pivotal regulation introduced last year that enabled broader legal use of digital assets in Bolivia. Since the decree’s implementation, the value of crypto transactions in the country has surged from US$46.5 million to US$294 million within just 12 months—an increase of over 530%.
According to the BCB, this collaboration is part of a broader vision to “modernize the financial system and deepen financial inclusion”, particularly in rural and underbanked communities. The hope is that crypto adoption, paired with regulatory clarity, can spur innovation while protecting consumers and supporting economic stability.
El Salvador Shares Lessons from Bitcoin Law
El Salvador brings significant policy experience to the table. In 2021, it became the first country in the world to adopt Bitcoin as legal tender through its landmark Bitcoin Law, making global headlines and sparking both admiration and criticism.
Since then, the Salvadoran government has navigated a variety of challenges, from public skepticism to international scrutiny. While the country has reportedly accumulated over 6,200 Bitcoin, it appears to have paused further purchases following a loan agreement with the International Monetary Fund (IMF). Nonetheless, El Salvador’s early steps offer a wealth of insight into how digital assets can be integrated into national finance systems—both the potential upsides and the pitfalls.
Looking Ahead: Regional Leadership in Web3 Policy
Bolivia’s new alliance with El Salvador positions it among the emerging nations in Latin America leading the charge in digital asset adoption. As the region grapples with inflation, currency instability, and limited access to traditional banking services, cryptocurrencies are increasingly seen as tools for financial empowerment and modernization.
By drawing on El Salvador’s firsthand policy experience, Bolivia aims to craft a regulatory roadmap that is both progressive and pragmatic, balancing innovation with oversight.
As this partnership unfolds, it could set a regional precedent for other Latin American countries looking to engage with the crypto economy—this time, with a blueprint in hand.
