TRENDING

Home » Crypto Pact: El Salvador and Bolivia Join Forces

Crypto Pact: El Salvador and Bolivia Join Forces

A new partnership between El Salvador and Bolivia marks a major step toward regulated cryptocurrency adoption and financial modernization across Latin America.

by Yashika Gupta
0 comment
El Salvador

In a significant move for Latin America’s digital finance sector, El Salvador and Bolivia have joined forces to promote cryptocurrency adoption. The Central Bank of Bolivia (BCB) has signed a memorandum of understanding with El Salvador’s National Commission of Digital Assets (CNAD), setting the stage for long-term cooperation in the crypto space.

This agreement aims to enhance the development of virtual assets and blockchain technology in Bolivia by learning from El Salvador’s experience. The memorandum has no expiration date, reflecting the two nations’ commitment to sustained collaboration.

The initiative focuses on exchanging technical knowledge, legal frameworks, and regulatory strategies. It will also support the creation of safe, regulated environments for digital assets, with the goal of encouraging investment and deepening financial inclusion, especially for small businesses and households.

Bolivia’s Crypto Growth Sparks Strategic Shift

Bolivia has seen a dramatic increase in the use of cryptocurrencies over the past year. The total transaction volume jumped from $46.5 million to $294 million between June 2024 and June 2025. This growth is largely attributed to the implementation of a new legal framework “R.D. No. 082/2024” which laid the foundation for regulated crypto usage in the country.

Source: Press Release

Source: Press Release

Recognising this trend, Bolivia has sought out El Salvador’s support to strengthen its own capabilities in regulating and managing digital assets. By tapping into El Salvador’s first-hand regulatory experience, Bolivia aims to create a more robust and compliant crypto environment.

The agreement provides Bolivia with access to blockchain intelligence tools, risk analysis methods, and supervision techniques. This marks a major shift in Bolivia’s financial strategy, focusing on modernisation and inclusion through digital innovation.

El Salvador Balances Global Role and Local Policy

El Salvador has been one of the most prominent advocates of cryptocurrency, famously adopting Bitcoin as legal tender in 2021. However, in January 2025, the country reversed this policy as part of an agreement with the International Monetary Fund (IMF) to secure a $1.4 billion loan. The deal included conditions that halted further public-sector Bitcoin purchases.

Despite this policy shift, El Salvador retains its position as a global leader in digital asset regulation. The country currently holds around 6,253 Bitcoins, a number that has remained unchanged throughout 2025 due to IMF restrictions. Increases in reported reserves have come from internal wallet consolidations, not fresh market purchases.

Bolivia

Even with these limitations, El Salvador continues to play a key role in regional crypto development. Through its partnership with Bolivia, it shares valuable insights into creating and managing legal frameworks, helping neighbours advance responsibly in the digital economy.

A Joint Vision for Financial Inclusion and Innovation

The partnership between El Salvador and Bolivia represents more than just policy exchange, it’s a shared vision for the future of finance in Latin America. Both countries aim to modernise their financial systems and improve access to financial services using digital tools.

Central to this effort is the commitment to financial inclusion. By creating secure, regulated spaces for crypto use, the agreement empowers small businesses and low-income households with more flexible and accessible financial options. For many Bolivians, this could mean easier access to savings, credit, and payments through blockchain-powered platforms.

The cooperation also provides Bolivia with tested strategies and frameworks from El Salvador, ensuring a more stable path toward crypto integration. The exchange of tools and expertise will help both countries stay ahead of regulatory challenges while adapting to the evolving global market.

A Model for Regional Digital Development

The El Salvador–Bolivia agreement sets a powerful example for other nations considering cryptocurrency as part of their financial modernisation plans. It shows how international cooperation can drive innovation while respecting domestic and international regulatory boundaries.

By leveraging El Salvador’s experience and regulatory tools, Bolivia is poised to expand its digital economy responsibly. The agreement paves the way for long-term progress, aiming to transform crypto assets into a legitimate and inclusive financial option for millions.

Related Posts :

footer logo