The Central Bank of Bolivia announced in its statement that it lifted the ban on Bitcoin and other cryptocurrencies.
The Central Bank of Bolivia, which lifted the BTC ban, allowed financial institutions to carry out cryptocurrency transactions.
In its statement, the Central Bank of Bolivia said that this step was taken in order to revive Bolivia's troubled economy and make it compatible with cryptocurrency regulations in Latin America.
The Central Bank of Bolivia warned its citizens that Bitcoin and cryptocurrencies are not “legal tender” even though the ban has been lifted, and stated that Bolivia's only legal currency is the “Bolivian Boliviano”.
Therefore, although the Bolivian government allows cryptocurrencies to be bought and sold through banks, it does not recognize them as legal tender and reminded investors that they should manage their own crypto risks.
While many Latin American countries have been struggling with a bad economy and rising inflation in recent years, El Salvador has become the only country in Latin America and the world to adopt Bitcoin as legal tender.
Argentina, one of the Latin American countries, is following in the footsteps of El Salvador.
*This is not investment advice.