The Bolivian government banned the use of cryptocurrencies such as bitcoin back in 2014. In this article, we will discuss, "What Is Bolivia's Currency? Why Did Bolivia Ban Bitcoin?" Let's get started.
What Is Bolivia's Currency?
The official currency of Bolivia is the Bolivian Boliviano (BOB).
Why Did Bolivia Ban Bitcoin?
The assumption that digital assets will encourage tax evasion and monetary instability in the country is the main reason for the ban. It is prohibited to use any currency that has not been issued or is not under the control of the government or another authorized organization, according to the Central Bank of Bolivia.
Unlike most countries that officially ban digital assets, Bolivia has been retrained from repression or criminalization of the holding or trade of cryptocurrencies.
Since crypto assets cannot be managed through the Bolivian financial system, the Central Bank of Bolivia has banned companies and brokers from offering services related to cryptography.
The regulator explained its decision by the need to protect the population from “risks and fraud.”
On January 10, 2022, the Central Bank of Bolivia re-banned the banking sector to make any transactions related to crypto assets. This measure “prohibits the use, marketing or transactions of crypto assets (digital or virtual coins) in the national payment system .”
In its January 10 press release, the Central Bank said the measure was necessary to protect the public from “risks and fraud.” The statement also warns that crypto trading has a “risk of creating economic losses” for holders of crypto assets.
The bank has attacked cryptography before. Back in December 2020, after the general election, it issued a resolution aimed at “banning the use of crypto assets in the domestic market.”
However, this warning was ignored. The media noted that numerous social media campaigns promoting services related to cryptography circulated in the country even after the ban on digital assets.
Despite the bans, citizens of the country also actively continue to use cryptocurrencies.
What Is Bolivia's Currency? Why Did Bolivia Ban Bitcoin? - Hopefully, this article can help you to get some knowledge.
