Cryptoassets in the public sector
The 2025 General State Budget authorized public entities and state-owned companies to engage in commercial activities, acquire, and transfer virtual assets to fulfill their contractual obligations in foreign currency. This measure, regulated by Supreme Decree No. 5301, marks a significant shift from previous years, when the use of cryptoassets was prohibited.
Since the lifting of this prohibition in June 2024, the use of cryptoassets has experienced unprecedented growth. The Central Bank of Bolivia (BCB) reported that by September 2024, the average number of cryptoasset transactions had increased by 141% in just three months compared to the six months prior to the lifting of the restriction.
Additionally, the BCB reported in November 2024 that between June 2023 and July 2024, over 252,000 Bolivians owned cryptoassets valued at an estimated USD 3 billion. During the same period, the number of transactions grew from 155,000 to 432,000, while the total value of transactions increased by 142%, reflecting accelerated adoption in the country.
The interest in cryptoassets lies in the various advantages they offer, such as lower transaction costs compared to traditional methods, speed and security in transfers, and lower fees for sending and receiving remittances, allowing users to save significant amounts of money.
Internationally, interest in cryptoassets has grown substantially, accompanied by a trend among states to implement clear regulations and guidelines to facilitate their adoption. In the United States, elected president Donald Trump announced policies aimed at positioning the country as a leader in cryptoassets, including the creation of a strategic Bitcoin reserve, considered the world’s most important cryptocurrency. This approach is also being evaluated in countries such as Chile, Japan, Brazil, and Switzerland, where strategies have been proposed to encourage the adoption of these technologies.
Similarly, the U.S. election has driven significant returns in the cryptoasset market, and since then, the price of Bitcoin has risen by 40%, while other cryptocurrencies such as Cardano (190%), Dogecoin (171%), and XRP (191%) showed even more pronounced increases. On the other hand, stablecoins have demonstrated resilience and stability in the face of regulations issued by the European Union and market volatility, offering a highly optimistic outlook for the entire cryptoasset market.
The inclusion of the public sector in the use of cryptoassets represents a strategic step toward the country’s financial modernization, fostering greater efficiency, dynamism, and flexibility in public operations. This approach not only strengthens Bolivia’s ability to align with global trends but also positions the country in a privileged position to take advantage of the opportunities offered by cryptoassets.
Author: Walter Marañon Quiñones
