Bolivia and El Salvador Sign Digital Assets Cooperation Agreement

The agreement between the two countries focuses on the exchange of information about digital assets, which, according to the Central Bank of Bolivia, have become a widely used alternative for international payments. El Salvador has emerged as a crypto powerhouse in Latin America, with several nations seeking to learn from its crypto experiences.

Bolivia and El Salvador Ink Digital Assets Mutual Cooperation Agreement

El Salvador has become a crypto powerhouse in Latin America, and more and more countries are seeking to benefit from the experience the nation has developed through its crypto journey. On Wednesday, Bolivia and El Salvador signed a digital assets-centered agreement to exchange information on the adoption of these assets in various areas.

According to a press release, the agreement was subscribed by the President of the Central Bank of Bolivia, Edwin Rojas Ulo, and the President of the Salvadoran National Commission of Digital Assets (CNAD), Juan Carlos Reyes García.

The Central Bank of Bolivia stated that this will allow both countries to “promote the exchange of experiences and technical and regulatory knowledge on the subject, including the use of blockchain intelligence tools, risk analysis, etc., within the framework of its regulatory powers.”

The bank highlights that the CNAD has become a pivotal part of the crypto ecosystem in El Salvador, given that it promotes security and regulation for this industry. “Thanks to its approach to fostering innovation in the sector, the Central American nation has established itself as a pioneer in regulation and has become one of the countries in the region with the most developed and advanced regulatory framework for promoting virtual assets,” it stressed.

Pakistan recently established bilateral ties with El Salvador for similar reasons, seeking to also benefit from the experience of Salvadoran authorities in the field of cryptocurrency assets.

After its central bank lifted the blanket ban on using the traditional financial system for cryptocurrency exchange operations in June 2024, the Bolivian crypto market exploded, with volumes settled rising over six times and stablecoins being leveraged as dollar proxies.

Read more: Central Bank of Bolivia Unbans Bitcoin From the Nation’s Financial Ecosystem

Read more: Central Bank of Bolivia Registers Record Use of Virtual Assets Amidst Dollar Scarcity