Bolivia plans to launch digital currency to address cross-border payments
Edwin Rojas Ulo, the President of the Central Bank of Bolivia, stated that the country is collaborating with international organizations to design a digital currency called "Virtual Bolivia," aimed at international settlements and conserving foreign exchange reserves, particularly the US dollar. He noted that this initiative will help modernize the payment system, especially in cross-border payment scenarios, by freeing up reserve funds. A detailed proposal for this digital currency is expected to be released in August.
Additionally, since the Central Bank of Bolivia allowed the purchase of cryptocurrencies using bank accounts, the adoption of digital assets has doubled within three months. Meanwhile, due to foreign exchange shortages, Bolivia has also started using stablecoins as a substitute for the US dollar and is exploring the possibility of paying for energy imports through cryptocurrencies.
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