Bolivia's Central Bank Says Cryptocurrencies Could Be Beneficial for the Financial System

Edwin Rojas Ulo, President of the Central Bank of Bolivia, noted the recent change in position regarding cryptocurrencies and stablecoins. The official said that, in his opinion, adding cryptocurrencies to the national financial system could be a beneficial alternative and noted the role of stablecoins as an analogue of the dollar.

Bolivia recently completed a change in its position on cryptocurrencies, lifting a general ban on the use of these assets. In statements published in official media, Rojas Ulo said that the decentralization of assets will facilitate commercial and private activities for the purchase of services and meet various needs. At the same time, he noted that some assets, such as Bitcoin, can be used as investment vehicles to generate income, but their volatility can work against the user.

However, for now, the Central Bank of Bolivia still calls the Boliviano the only officially recognized currency in the country, and Bolivians are not required to accept cryptocurrency as a method of payment. Likewise, he cautioned that the risks of using and trading cryptocurrency should be borne by the owners.