Main Points:
- Bolivia’s Central Bank (BCB) and El Salvador’s National Digital Assets Commission (CNAD) sign an MoU to treat cryptocurrencies as a “realistic and reliable alternative” to fiat.
- The partnership enables sharing of blockchain intelligence tools, risk-analysis frameworks, and regulatory best practices.
- Bolivia will leverage El Salvador’s experience since adopting Bitcoin as legal tender in 2021.
- Crypto transactions in Bolivia have soared 530%, from $46.5 million in H1 2024 to $294 million in H1 2025.
- Wider LatAm trends: Brazil drives 77% of regional crypto volume; overall adoption rate is 12.1% (57.7 million users).
- Panama recently passed Bill No. 247 to regulate cryptoassets and position itself as a fintech hub.
Significance of the MoU
The memorandum of understanding, signed by Acting BCB Governor Edwin Rojas Ulo and CNAD Chair Juan Carlos Reyes García, took immediate effect and remains in force indefinitely. By officially recognizing cryptocurrencies as a viable alternative to traditional money, Bolivia signals a dramatic shift from its historically cautious stance. Under this agreement, both nations will exchange expertise on blockchain-based intelligence tools, risk-analysis frameworks, and regulatory best practices aimed at modernizing financial systems and fostering a safe, regulated digital-asset ecosystem.
This milestone partnership underscores a broader Latin American movement toward collaboration and knowledge-sharing in the rapidly evolving crypto sector. For Bolivia, a landlocked economy grappling with inflation and dollar shortages, this alliance could open channels for foreign investment, expand financial inclusion for small entrepreneurs, and embed blockchain solutions within national infrastructure.
El Salvador’s Bitcoin Playbook
Since making Bitcoin legal tender in September 2021, El Salvador has been both lauded and critiqued for its bold experiment. CNAD, which played a central role in crafting one of Latin America’s most comprehensive crypto regulatory regimes, will guide Bolivia through the economic and compliance challenges of a national digital-asset rollout. This includes tackling volatility management, merchant integration, and public education initiatives that have defined El Salvador’s journey.
By tapping into El Salvador’s playbook—covering wallet deployment, regulatory compliance, and risk mitigation—Bolivia aims to draft clear, innovation-friendly policies that support fintech growth. The insight gained will help Bolivia structure incentives for blockchain developers, design consumer protection measures, and balance technological ambition with macroprudential stability.
Surge of Crypto Transactions in Bolivia
Bolivia lifted its 2024 ban on cryptocurrencies to invigorate a struggling economy. The results have been striking: the value of crypto transactions via electronic payment channels and virtual-asset platforms skyrocketed by over 530%, jumping from $46.5 million in the first half of 2024 to $294 million in the same period of 2025, with a record $68 million processed in May alone.
This explosive growth reflects severe macroeconomic strains—40-year-high inflation, near-zero dollar reserves, and a rapidly depreciating boliviano—all of which have driven citizens and small businesses toward digital assets as stores of value and payment mechanisms.
Figure 1 here: Growth of Crypto Transactions in Bolivia (H1 2024 vs. H1 2025)
Insert bar/line chart illustrating the surge from $46.5 M to $294 M.
Wider Latin American Crypto Trends
Latin America’s crypto landscape has matured significantly:
- Market Concentration: Brazil now accounts for 77% of the region’s trading volume as of May 2025, up from just 17% in early 2020, underscoring its dominance in crypto markets.
- User Adoption: Approximately 57.7 million people—12.1% of the population—own some form of digital currency, with Argentina leading at 18.2%, Brazil at 16.7%, and El Salvador at 14.2%.
- Regulatory Innovation: Countries are experimenting with frameworks ranging from CBDCs to stablecoin oversight. Panama’s Bill No. 247 seeks to regulate cryptoassets, making the nation a potential Bitcoin hub due to its strategic geographic and financial position.
Economic instability, currency volatility, and remittance flows continue to drive crypto adoption for both investment and everyday transactions. As Latin American governments refine regulations, the region stands poised for sustained blockchain innovation.
Regulatory Innovations in Panama
In July 2025, Panama’s National Assembly approved Bill No. 247—also known as the “Crypto Law”—to establish clear rules for cryptocurrencies and position the country as a fintech leader. The law recognizes major assets like Bitcoin (BTC), Ethereum (ETH), and permitted payment stablecoins as valid payment methods for goods, services, and debt settlements, while mandating reserve backing for stablecoin issuers.
Panama’s move follows a wave of legislative efforts across the region aimed at fostering innovation while safeguarding consumers. Alongside Bolivia’s MoU and El Salvador’s legal-tender status, Panama’s regulatory framework illustrates a trilateral push toward blockchain integration as a driver of economic development.
Implications for Investors and Developers
For investors, this trilateral collaboration underscores Latin America’s transition from pilot projects to production-scale blockchain applications. Key considerations include:
- Regulatory Clarity: Clear rules reduce compliance risk and attract institutional capital.
- Network Stability: Lessons from Polygon outages and market volatility highlight the need for resilient infrastructure.
- Innovation Hubs: With support from central banks and legislative bodies, opportunities abound for dApp development, DeFi platforms, and tokenization projects.
- Financial Inclusion: Digital-asset tools can expand banking services to underbanked populations and enhance remittance efficiency.
Blockchain developers should monitor national pilot programs, seek partnerships with financial authorities, and design solutions that align with evolving regulatory standards. As Bolivia, El Salvador, and Panama chart new territory, they pave the way for broader Latin American adoption and global investor interest.
Conclusion
The MoU between Bolivia’s Central Bank and El Salvador’s CNAD marks a watershed in Latin American crypto policy. By combining El Salvador’s groundbreaking Bitcoin-legal-tender experience with Bolivia’s urgent need for financial stability and Panama’s forward-looking regulation, the region is forging an integrated digital-asset ecosystem. For investors and developers seeking new opportunities, this trilateral alliance offers a blueprint for innovation, inclusion, and sustainable growth in blockchain-powered finance.
