Bolivia Bank Launches USDT Custody Service, Continuing Momentum in Crypto Adoption

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In a significant move signaling growing acceptance of digital assets, Banco Bisa—one of Bolivia’s leading financial institutions—has launched a custody service for USDT (Tether), enabling customers to buy, sell, and transfer the world’s most widely used stablecoin. This development marks a pivotal shift in Bolivia’s financial landscape, where just a decade ago, cryptocurrencies were strictly prohibited.

The rollout of USDT services by Banco Bisa reflects broader regional trends in Latin America, where banks and regulators are increasingly embracing blockchain-based financial solutions. By integrating stablecoin functionality into its offerings, the bank aims to modernize payment systems, enhance cross-border transactions, and provide citizens with greater control over their financial assets—all within a regulated environment.

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Regulatory Support for Crypto Innovation

The initiative has received strong backing from Bolivia’s financial regulator, the Autoridad de Supervisión del Sistema Financiero (ASFI). Yvette Espinoza, a senior official at ASFI, affirmed that the new service operates within the country’s evolving regulatory framework, allowing citizens to engage in crypto transactions securely and transparently.

This regulatory endorsement is crucial. It ensures that users are protected from the risks associated with unregulated crypto platforms—such as fraud, loss of funds, or lack of consumer recourse—while still benefiting from the speed and efficiency of blockchain technology.

Franco Urquidi, Vice President of Business at Banco Bisa, emphasized that all customers will undergo a rigorous verification process before accessing the USDT service. “This ensures secure transactions and gives our clients peace of mind,” he stated during the official announcement.

Such measures align with global best practices in digital asset management, combining Know Your Customer (KYC) protocols with secure custody solutions—a model increasingly adopted by forward-thinking financial institutions across Latin America.

From Ban to Embrace: Bolivia’s Crypto Policy Reversal

The journey to this point has been dramatic. In 2014, Bolivia implemented one of the strictest crypto bans in the world. The Central Bank of Bolivia explicitly prohibited the use of any currency not issued or regulated by the government—including Bitcoin (BTC)—citing concerns over monetary sovereignty and financial stability.

At the time, authorities warned that decentralized digital currencies could undermine the national boliviano and expose citizens to volatile, unregulated markets. As a result, crypto trading, mining, and payments were all outlawed.

However, by 2024, Bolivia began reversing course. On June 28 of that year, the country lifted its ban on Bitcoin and cryptocurrency payments, authorizing financial entities to facilitate digital asset transactions under supervision.

This policy shift was driven by a desire to modernize the economy and harmonize regulations with neighboring countries like Brazil, Argentina, and Paraguay—all of which have established or are developing formal crypto frameworks.

According to an official notice issued by the Central Bank of Bolivia, the change aims to “enhance financial inclusion, improve remittance efficiency, and integrate Bolivia into the global digital economy.”

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Rapid Growth in Virtual Asset Transactions

The impact has been immediate and substantial. By September 27, 2025, the Central Bank reported a 100% increase in virtual asset transaction volume since the lifting of restrictions. Between July and September alone, monthly average crypto transaction values reached $15.6 million.

While these figures may seem modest compared to larger economies, they represent a significant leap for a country previously closed off to digital finance. The surge is largely attributed to rising demand for faster, cheaper cross-border payments—particularly among Bolivians working abroad who send remittances home.

Banco Bisa’s USDT service directly addresses this need. Stablecoins like USDT offer price stability (pegged 1:1 to the U.S. dollar), low transaction fees, and near-instant settlement times—making them ideal for international transfers.

Moreover, users can now hold their assets digitally through a trusted institution, reducing reliance on informal channels or foreign banking services.

No Formal Tax Framework Yet

Despite these advancements, Bolivia has yet to establish a formal tax framework for cryptocurrency transactions. This absence means there are currently no capital gains taxes, reporting requirements, or specific guidelines for businesses accepting digital payments.

While this regulatory gap offers short-term flexibility, it also presents challenges for long-term sustainability. Without clear tax rules, it becomes difficult for auditors, accountants, and businesses to comply with financial reporting standards.

Experts suggest that Bolivia will need to introduce comprehensive crypto legislation in the coming years—potentially modeled after frameworks in jurisdictions like El Salvador or Switzerland—to ensure transparency, prevent money laundering, and generate public revenue.

What This Means for Financial Inclusion

Banco Bisa’s move could play a transformative role in expanding financial access across Bolivia. With nearly 30% of adults unbanked—particularly in rural areas—digital assets offer an alternative path to economic participation.

By leveraging mobile banking and blockchain infrastructure, even individuals without traditional bank accounts can receive USDT transfers, pay bills, or save in a stable currency. This is especially valuable in regions where inflation or currency devaluation erodes purchasing power.

Furthermore, integrating USDT into mainstream banking reduces stigma around crypto use and encourages responsible adoption—shifting perception from speculative asset to practical financial tool.

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Frequently Asked Questions (FAQ)

Q: Is USDT legal tender in Bolivia?
A: No, USDT is not legal tender. However, it is now legally recognized as a digital asset that can be bought, sold, and transferred through authorized financial institutions like Banco Bisa.

Q: Can I use USDT to pay for goods and services in Bolivia?
A: While direct merchant adoption is still limited, the infrastructure now exists for businesses to accept USDT. As awareness grows, more vendors may begin integrating crypto payment options.

Q: Is my USDT balance insured like a regular bank deposit?
A: Currently, there is no government-backed insurance for USDT holdings. However, Banco Bisa employs secure custody solutions and identity verification to protect user assets.

Q: Are cryptocurrency gains taxed in Bolivia?
A: As of now, Bolivia does not have a formal tax framework for crypto transactions. Users should stay informed about potential future regulations.

Q: How do I get started with USDT through Banco Bisa?
A: Customers must complete a verification process through the bank’s digital platform. Once approved, they can access USDT trading and transfer features via mobile or online banking.

Q: Why did Bolivia reverse its crypto ban after 10 years?
A: The reversal was driven by economic modernization goals, increased regional alignment with crypto-friendly policies, and growing demand for efficient digital payment solutions.

Core Keywords:

With this bold step forward, Bolivia joins a growing list of nations reimagining finance through digital assets—not by rejecting regulation, but by integrating innovation within it.