The Bolivian Central Bank has moved to “ban” the use of cryptocurrencies in the country — and issued warnings about what it sees as the “risks” involved in investing in crypto assets such as Bitcoin (BTC).
According to Talam News Agency, Central Bank of Bolivia The BCB has issued a “ban” on cryptocurrencies in the country and “warned that users of these digital securities” may go along with experiencing financial losses or falling victim to “scams” – because they are inherently “untrustworthy.”
In an official statement, the bank said:
“Because crypto assets are not legal tender in [Bolivia], BCB prohibits its use, as well as its marketing and [purchase], because they are [incur] The potential risks of generating economic losses for its operators and owners.
Although BCB does not appear to have attempted to criminalize holding or trading cryptocurrencies, it appears keen to close the door to all companies and brokers seeking to provide crypto-related services in Bolivia.
The bank explained:
“Special initiatives related to the use and marketing of […] Crypto assets may not be operated through the Bolivian financial system. It does not operate with the permission of BCB or [regulatory] Financial System Supervisory Authority. “
The Swiss Central Bank (BCB) added another warning about the risks of investing in crypto projects and justified its move, stating that the “ban” would “protect against risks, fraud and fraud” that ordinary Bolivians might be exposed to.
The bank has criticized cryptocurrencies before. Back in December 2020, in the wake of that year’s general election, it passed a resolution aimed at “banning the use of crypto assets in the domestic market.”
However, this warning appears to have fallen on deaf ears, as several media outlets have indicated that social media campaigns promoting crypto-related services have been circulating in the country in the months since its announcement.
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