On Wednesday, the Bolivian central bank announced it had signed a formal agreement with Salvador’s digital asset regulator, telling the important steps towards developing legal and technical frameworks for the adoption of cryptocurrencies in Andes countries.
The Central Bank of Bolivia (BCB) and El Salvador’s Comisiónnacionalde activos Digitales (CNAD) will work together on a wide range of crypto policy initiatives under the terms of the newly signed memorandum. The agreement includes collaboration on blockchain intelligence tools, regulatory frameworks and risk analysis models. It is open-ended and takes effect immediately.
The policy change is due to the accelerated use of encryption in Bolivia. Digital asset trading volume increased from $46.5 million in June 2024 to $294 million in June 2025, according to figures released by BCB.
The new contract is based on El Salvador’s experience as the first country to adopt Bitcoin as its fiat currency and build a formal digital asset regulation system. Established after El Salvador’s Bitcoin Act of 2021, CNAD oversees token product approval, registration of digital asset service providers, and oversees crypto-related platforms.
Acting BCB President Edwin Rojas Uro and CNAD President Juan Carlos Reyes Garcia have signed the contract at La Paz. The two institutions share best practices aimed at supporting Bolivia’s goal of creating a transparent, inclusive, well-regulated digital asset ecosystem, especially for those who are not serviced by traditional finance.
While Bolivia has historically been cautious about codes, the contract shows a move towards a progressive regulatory involvement rather than a limit. Authorities stressed that cooperation with El Salvador will help Bolivia modernize its financial infrastructure while protecting stability and promoting innovation.
The deal coincides with many countries exploring customized crypto regulations in response to the rapid adoption of Bolivia, particularly in Latin America. It also strengthens the role of El Salvador as a regional reference point for crypto integration at the institutional level.
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