KEY FACT: In Bolivia, Banco Bisa has introduced a new service allowing customers to hold, buy, sell, and transfer Tether (USDT). This service, supported by Bolivia’s financial regulator, aims to facilitate crypto transactions within a regulated framework, to enhance security for users. This move follows Bolivia’s decision earlier in 2024 to lift a long-standing ban on cryptocurrency transactions. The growing crypto activity aligns with Latin America's trend toward digital assets, though a formal tax framework is still pending.
Source: Bank Banco Bisa
Bolivian Bank Banco Bisa Launches Stablecoin Custody Service
Banco Bisa, one of Bolivia’s leading financial institutions, has introduced a custody service for stablecoin, Tether (USDT). This will allow customers to hold and transact with the popular stablecoin. This new feature is a significant shift in Bolivia’s stance on cryptocurrency, as the country had previously imposed strict limits on crypto trading. The latest development is backed by Bolivia’s financial regulator and aims to establish a safe, regulated avenue for digital asset transactions.
Banco Bisa Bank announced the custody service for USDT over the weekend, stating that it would allow its clients to buy, sell, and transfer USDT through the bank. This will provide them with an option to transact in a dollar-pegged asset during times of national currency fluctuations. According to Banco Bisa, the service will enable users to hold their assets, send them to relatives, and make cross-border payments. This development is in alignment with Latin America's trend toward digital currency adoption.
Franco Urquidi, Vice President of Business at the financial institution, highlighted that all transactions must be conducted to and from an account at Banco Bisa, to ensure a high level of security.
This new service offers customers the option to hold funds in USDT for as long as they wish, make international payments, and even send money to family members studying abroad. "The sky is the limit," said Urquidi.
Urquidialso emphasized the importance of financial education in the use of virtual assets. To that end, the bank has established strategic alliances with recognized international custody and exchange companies, to ensure that users' data are protected and that illicit activities are prevented. According to Urquidi:
“Our customers go through a rigorous verification process, which gives them peace of mind that their transactions are conducted through secure and reliable channels,”
The Director of the Financial System Supervision Authority (ASFI), Yvette Espinoza, speaking in support of the initiative, stated that Banco Bisa is a pioneer in offering this service within a regulatory framework that ensures user security and trust.
"This is a custody service that will allow customers to carry out various operations securely, reducing the risk of unsafe interactions in the cryptocurrency market," Espinoza said.
This development comes in the wake of Bolivia’s progressive shift in crypto policy, which began in 2024 when it relaxed its long-standing restrictions on cryptocurrency trading. The decision to introduce USDT custody has drawn attention to Bolivia's shifting economic strategy, aiming to offer citizens greater control over their financial assets in a regulated manner.
Bolivian central bank’s notification on crypto transactions. Source: Banco Central de Bolivia
In Latin America, where financial instability and inflation have often led to interest in cryptocurrency, Banco Bisa’s USDT service could pave the way for more widespread crypto adoption. As more Bolivian users begin to engage with USDT through Banco Bisa’s custodial platform, analysts suggest this could increase demand for additional crypto services in the region. Meanwhile, there is still anticipation for a formalized tax framework for cryptocurrency, which Bolivia has yet to implement, but the bank’s regulated approach suggests that the groundwork is being laid for a safer and more structured digital asset environment.
With its USDT custody service, Banco Bisa is positioning itself at the forefront of Bolivia’s digital finance movement. Bolivians can now gain access to a widely accepted stablecoin as a hedge against economic uncertainty.
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