Bolivia's Central Bank has entered into a memorandum of understanding with El Salvador's National Commission of Digital Assets to develop a regulatory framework for digital assets. This partnership aims to modernize Bolivia's financial infrastructure and promote financial inclusion by integrating digital assets into the economy.
The collaboration focuses on sharing expertise in digital asset regulation, blockchain technologies, and risk management tools. El Salvador, which became the first country to adopt Bitcoin as legal tender in 2021, offers valuable experience in integrating digital assets into a national financial system. The agreement is open-ended and effective immediately, allowing both institutions to work together on various crypto policy initiatives.
This partnership follows Bolivia's policy shift in June 2024, when the government lifted its long-standing ban on digital assets. Since then, Bolivia has seen a significant increase in crypto activity, with transaction volumes rising from $46.5 million in June 2024 to $294 million in June 2025. The government has also authorized the national oil company, YPFB, to use digital currencies for fuel imports, aiming to address foreign exchange shortages and maintain fuel subsidies amid economic pressures.
By collaborating with El Salvador, Bolivia seeks to build a transparent, inclusive, and well-regulated digital asset ecosystem, particularly for populations underserved by traditional finance. The partnership is part of a broader effort to modernize Bolivia's financial infrastructure while safeguarding stability and promoting innovation.
As Bolivia continues to integrate digital assets into its economy, this collaboration with El Salvador is expected to play a crucial role in shaping the country's financial future and could serve as a model for other nations exploring digital asset adoption.