• Bolivias Central Bank (BCB) signed an agreement with El Salvadors National Commission for Digital Assets (CNAD) to leverage El Salvadors expertise in crypto regulation and integration.
  • This partnership seeks to modernise Bolivias financial system as the Bolivian currency faces pressure.
  • The agreement establishes a framework for ongoing cooperation without a specific timeline.

Bolivia is turning to El Salvador for guidance as it prepares to formalise its approach to crypto regulation. 

More specifically, the Central Bank of Bolivia (BCB) entered into a memorandum of understanding with El Salvadors National Commission for Digital Assets (CNAD), securing access to the latters experience in creating and enforcing rules and laws for crypto regulation.

The agreement was signed by CNAD president Juan Carlos Reyes Garc�a and BCB acting president Edwin Rojas Ulo. 

It essentially sets out a go-to framework for ongoing cooperation between the two countries, covering the exchange of technical and regulatory expertise, blockchain intelligence tools, and riskanalysis methodologies, with no expiry date on the partnership whatsoever.

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The news comes as the countrys official currency, the boliviano, faces mounting pressure, with foreignexchange reserves having collapsed from US$12.7B (AU$19B) in mid2014 to just US$165M (AU$256M) this April. 

Some merchants have started quoting prices in Tethers USDT stablecoin as well, as the companys CEO Paolo Ardoino showed on X.

For Bolivia, the deal builds on momentum from Decree/082/2024, which opened the door to broader crypto use. In just 12 months, digital asset transactions in the country have jumped from US$46.5M (AU$71.1M) to US$294M (AU$450M).

The BCB framed the move as part of a push to modernise the financial system and deepen financial inclusion.

El Salvador brings three years of firsthand policy experience, beginning with its 2021 Bitcoin Law that granted BTC legaltender status. Despite holding over 6,200 Bitcoin, it looks like the country has stopped buying BTC after securing a loan with the IMF, reportedly.

Related: On The Radar What to Watch This Week in Crypto

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