In a landmark shift, Bolivia's central bank has declared cryptocurrencies a reliable alternative to traditional fiat currencies, reversing years of skepticism. This pivotal policy change was formalized through a partnership agreement signed with El Salvador's National Commission of Digital Assets (CNAD) on July 30, 2025.
The collaboration aims to accelerate crypto adoption in Bolivia by leveraging El Salvador's pioneering experience as the first nation to adopt Bitcoin as legal tender in 2021. Edwin Rojas Ulo, Acting President of Bolivia's central bank, emphasized that crypto offers financial modernization and inclusion, particularly for unbanked populations and remittance-dependent communities. The partnership will focus on developing regulatory frameworks, public education initiatives, and technological infrastructure, drawing directly from El Salvador's established systems like its national Bitcoin wallet and geothermal-powered mining operations.
This alliance addresses Bolivia's economic challenges—including inflation and costly cross-border transactions—by positioning cryptocurrencies as tools for hedging against currency devaluation and streamlining remittances. Juan Carlos Reyes García of El Salvador's CNAD will jointly oversee policy development, with both nations viewing crypto integration as critical to regional economic resilience.