Edwin Rojas Ulo, President of the Central Bank of Bolivia, highlights the benefits of incorporating crypto and stablecoins into Bolivia’s financial system, emphasizing their potential to enhance payment methods and provide alternatives to U.S. dollars.
Bollywood Fever: Edwin Rojas Ulo, President of the Central Bank of Bolivia, recently addressed the institution’s shift in perspective regarding cryptocurrencies and stablecoins. Rojas Ulo highlighted the potential advantages of integrating crypto into the national financial system and acknowledged stablecoins as a viable alternative to the U.S. dollar.
Central Bank of Bolivia Embraces Crypto and Stablecoins
Bolivia has reversed its previous blanket ban on the use of cryptocurrencies within its financial system. Edwin Rojas Ulo, speaking on behalf of the Central Bank of Bolivia, emphasized the benefits that Bitcoin (BTC) and other cryptocurrencies could bring to the Bolivian payments system.
In his statements reported by official media, Rojas Ulo noted that the decentralization of crypto assets would “favor commercial and private activities for the purchase of services and, of course, satisfy different needs.” He also pointed out that while assets like Bitcoin can serve as investment tools, their volatility may pose risks to users.
Rojas Ulo specifically mentioned stablecoins—digital tokens pegged to the value of other assets or currencies, such as the U.S. dollar. He explained that dollar-pegged stablecoins, like USDT, offer significant advantages for users who lack direct access to U.S. dollars. Using stablecoins is “as if one were trading in North American currency, although what one is doing are operations with these digital assets,” Rojas Ulo stated.
A recent op-ed by Bitcoin.com News highlighted the challenges Bolivians face in accessing U.S. dollars and how adopting crypto could help alleviate this issue by utilizing stablecoins.
Official Currency and Risks
Despite these positive remarks, the Central Bank of Bolivia reiterated that the boliviano remains the only official currency in the country, and there is no obligation for Bolivians to accept cryptocurrency as a payment method. The institution also warned that the risks associated with using and trading cryptocurrencies must be borne by the users themselves.
Rojas Ulo’s statements mark a significant shift in Bolivia’s approach to cryptocurrencies, indicating a move towards exploring their potential benefits while acknowledging the inherent risks. This change could pave the way for greater financial inclusivity and flexibility within the Bolivian economy.
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