Bolivian bank Banco Bisa has made a significant move in the cryptocurrency landscape by launching a custody service specifically for Tether’s USDT stablecoin. This service enables clients to manage their cryptocurrency holdings directly through the bank, allowing them to buy, sell, and transfer USDT seamlessly. The official announcement highlighting this initiative was made last week, pointing towards a new era in Bolivia’s financial services.
A New Crypto Custody Service in Bolivia
According to Banco Bisa, this innovative custody service not only provides users with the ability to hold their USDT assets but also facilitates smooth transactions with family members and enables cross-border payments. The bank aims to create a secure environment for its customers to engage with cryptocurrencies, promoting a safer approach to digital asset management.
Regulatory Backing and Safety Measures
Yvette Espinoza, a representative from the Autoridad de Supervisión del Sistema Financiero (ASFI), emphasized the importance of this initiative in helping Bolivia adopt cryptocurrencies under a regulated framework. The intent behind this move is to reduce the risks typically associated with unregulated crypto transactions. Espinoza stated, “This is a custody service that will allow clients to carry out various operations safely, reducing the risk of unsafe interactions in the cryptocurrency market.”
Affordable Transactions and International Transfers
Banco Bisa has designed its custody service to be accessible, with USDT sales starting at a minimum of 200 USDT and a daily transaction limit of 10,000 USDT. The associated fees for these services range from 35 to 100 bolivianos (approximately $5 to $14.5), depending on the transaction size. For those looking to make international payments, the cost of transferring funds to dollar accounts abroad is set at 280 bolivianos ($40.5), making it an attractive option for cross-border transactions.
Customer Verification for Enhanced Security
Franco Urquidi, the vice president of business at Banco Bisa, noted that customers would need to undergo a verification process to ensure secure transactions. He affirmed that this step is crucial in providing clients with confidence and peace of mind when conducting operations within the crypto space. “The future looks bright for those looking to explore the world of cryptocurrencies in Bolivia,” Urquidi remarked, indicating positive prospects for crypto enthusiasts in the country.
Bolivia’s Shifting Stance on Cryptocurrencies
Historically, Bolivia’s government had taken a stringent approach towards cryptocurrencies, imposing a ban in 2014 on any currency not sanctioned by the state, which included Bitcoin. This prohibition was meant to protect the national currency and citizens from potential financial risks. However, in June 2023, the Bolivian government reversed this ban, allowing financial institutions to engage in digital asset transactions to stimulate economic growth and align with evolving regulations in Latin America.
Growing Crypto Activity Post-Ban
Since lifting the ban, the Banco Central de Bolivia has reported a remarkable surge in virtual asset trading, with a 100% increase in crypto transactions recorded from July to September. The average monthly trading volume reached about $15.6 million, showcasing a burgeoning interest in cryptocurrencies among the Bolivian populace. Despite this progress, the country still faces challenges, such as the absence of a formal tax framework for crypto transactions.
Regional Crypto Trends in Latin America
In the broader Latin American context, Argentina has emerged as a leader in cryptocurrency adoption, surpassing Brazil in total estimated inflows between July 2023 and June 2024. During this period, Argentina attracted roughly $91 billion in cryptocurrency deposits compared to Brazil’s $90 billion. This increase in crypto activity is linked to Argentina’s ongoing economic challenges, including high inflation and currency devaluation. Notably, stablecoins have dominated crypto transactions in Argentina, accounting for 61.8% of activities, compared to Brazil’s 59.8% and significantly above the global average of 44.7%.