Bolivia’s Crypto Regulatory Shift in 2025: From Ban to Bank-Mediated Stablecoin Transactions

Bolivia's cryptocurrency landscape has undergone a seismic shift in 2025, transitioning from outright prohibition to a regulated framework that permits banking institutions to facilitate stablecoin transactions. The government now formally recognizes blockchain technology, tokenized assets, and virtual asset service providers (VASPs), while simultaneously fostering fintech innovation through tailored legal structures.

Executive Order 5399 specifically prohibits the state-owned oil company YPFB from utilizing cryptocurrencies for payments, following unconfirmed reports of internal stablecoin usage for dollar-denominated trades. Stablecoins remain legal for ownership and trading but are barred from commercial payments and lack legal tender status—all transactions must FLOW through authorized banks.

This regulatory evolution positions Bolivia as a cautious adopter of digital assets, balancing technological recognition with controlled implementation. The framework explicitly excludes cryptocurrencies from petroleum sector transactions while creating pathways for financial technology startups to operate within defined parameters.