El Salvador Pioneers Crypto Diplomacy: Bolivia Set for Economic Revival Through Bitcoin Adoption

El Salvador doubles down on its crypto evangelism—this time pulling Bolivia into the fold. The Bitcoin pioneer is exporting its playbook to reignite a stalled economy.

Why Bolivia? The landlocked nation's 40% unbanked population makes it ripe for disruption. Enter crypto—cutting out middlemen, slashing remittance fees, and (theoretically) bypassing inflation.

But let's be real: this isn't charity. El Salvador's betting its crypto cred will mint new trade alliances—while Wall Street still scoffs at their 'volatile gambles.'

One thing's certain: when traditional finance fails, the unbanked don't wait for permission to innovate.

Bolivia’s crypto ecosystem

Bolivia aims to use the El Salvador experience to implement and oversee crypto-related policies. Officials say the agreement is part of a broader effort to build safe, well-regulated crypto ecosystems that could attract foreign investment and promote financial innovation.

Bolivian authorities highlighted the growing relevance of digital assets in cross-border transactions and acknowledged the value of El Salvador’s early adoption of crypto in shaping their own policy path.

The partnership follows a significant policy change in Bolivia. In June 2024, the government passed Resolution 082/2024, overturning a long-standing crypto ban.

The new regulation legalized digital assets for trading and allowed electronic payment methods to support transactions.

As a result, Bolivia saw a surge in crypto activity. Transaction volumes jumped from $46.5 million to nearly $294 million between June 2024 and June 2025.

To further integrate crypto into its economy, Bolivia authorized its national oil company, YPFB, to use digital currencies for fuel imports. The decision helps manage foreign exchange shortages and maintain fuel subsidies amid economic pressures.