A South American nation is traversing the path toward becoming a champion in cryptocurrency in the region.
Bolivians now have the opportunity to invest in digital currency as one of the country’s leading financial institutions introduced a custody service dedicated to Tether’s stablecoin, USDT.
Bolivia Adopts Crypto
Bolivia, a country known for its diverse culture, is the latest South American state to adopt cryptocurrency.
One of its largest banks, Banco Bisa, recently opened a custody service facility exclusively for Tether. This marked the entry of cryptocurrency into the country’s financial sector. It became the third neighbor of Brazil and Argentina that embraced digital assets.
Bolivian Banco Bisa to launch custody services for leading #stablecoin $USDT.
Clients will be able to buy, sell and transfer the coin. https://t.co/RCGZs4MQpo
— fintech-portal (@fintech_portal) October 28, 2024
The custody service will allow Bolivians to trade USDT, enabling the bank’s clients to buy, dispose, and hold digital currency in a secure and regulated environment.
Banco Bisa Vice President Franco Urquidi disclosed that the bank’s latest offering focuses on security to give its clients a safe environment to conduct their crypto trading.
Urquidi explained that any transaction should come from and conclude within the bank’s accounts, emphasizing that this move ensures that there is control and oversight.
He added that Banco Bisa carries out а rigorous verification process for its clients.
Government Supports The New Service
Bolivia’s financial regulatory agency Autoridad de Supervision del Sistema Financiero (ASFI) backed Banco Bisa in offering a custody service for crypto.
ASFI representative Yvette Espinoza explained that the new service will greatly benefit Bolivians since it will give its citizens a chance to invest in the cryptocurrency market while abiding by financial regulations put in place to reduce the risks associated with crypto.
It can be recalled that Bolivia outlawed the use of cryptocurrencies in 2014. Authorities barred Bolivians from utilizing currencies that are not regulated by the state.
Ten years later, state authorities had a change of heart and decided to lift the ban to allow Bolivians to embrace cryptocurrency in the same way it is being adopted globally.
The state-run Banco Central de Bolivia defended the switch of stance, saying that the country wanted to align itself with the crypto regulations in Latin America and uplift its economy by allowing new forms of investments.
Banco Central Joins The Bandwagon
Aside from Bolivia, demand for cryptocurrency is increasing in other parts of South America.
Statistics showed that the number of crypto users in the region went up by 16% in 2020, from only 6% in 2017, an indicator that digital assets are gaining a foothold in South America.
For example, El Salvador, another South American nation, recently decided to make Bitcoin its official national currency to boost its financial industry.
Featured image from Atlas21, chart from TradingView