RIO DE JANEIRO, BRAZIL – According to information published by local media, the measure imposed by the financial entity is based on the absence of institutional regulatory frameworks that adequately address the commercialization and use of these assets, which in turn is based on article 328 of the Constitution.
In order to avert risks and fraud for the local population, the BCB determined through Board Resolution 144/2020 to ban the use, commercialization and negotiation of cryptoassets by financial entities through the national payment system, given that they do not represent legal tender in Bolivia.
The BCB stated in a recently published statement the following:
“As cryptoassets are not legal tender [in Bolivia], the BCB bans their use, as well as their commercialization [and purchase], as they [incur] potential risks of generating economic losses to their operators and users.”
It also cautioned that “users of these digital assets” could potentially incur financial losses or be victims of scams, precisely because according to the agency they are not trustworthy.
ALSO APPLICABLE TO PRIVATE ENTITIES
While the measure would apply to the commercialization of popularly known cryptocurrencies, the BCB also made a statement addressing private entities interested in launching their own cryptoassets as part of their business models, on which it said:
“Private initiatives related to the use and commercialization of cryptoassets may not be operated through the Bolivian financial system. They do not operate with authorization from the BCB or the Superintendence of Supervision of the Financial System.”
AGAINST CRYPTOCURRENCIES FOR LONG
This recently issued announcement by the BCB follows a long-standing stance against the commercialization and use of the main cryptocurrencies in the country.
Prior to this announcement, in late 2020, the BCB decided to ban the use of cryptocurrencies in the country.
However, critics and enthusiasts indicate that this type of statements have no legal standing per se, because even if the BCB does not endorse the commercialization of these assets in Bolivia, this does not prevent the circulation of advertising campaigns and business models based on them, many of which unfortunately promote scams.
Although Bolivia does not stand out for being one of the most lucrative markets for cryptocurrencies at a regional level, this does not preclude users and entities in the country from highlighting the benefits of these assets in the local economy, providing educational campaigns to offer guidance on their appropriate use and the opportunities they represent.