Bolivian Central Bank Chairman Edwin Rojas ULO said the agency is currently in consultation with international organisations on the design of a currency called “virtual Bolivianos” and is promoting international settlements.
Bolivia Central Bank to launch digital currency with international settlements in mind
Bolivia, which initially banned the use of the financial system to purchase cryptocurrency, is now planning to launch its own cryptocurrency as part of its push to modernize the country's payment ecosystem.
Bolivian Central Bank Chairman Edwin Rojas ULO said the agency is currently in the process of designing the monetary system, scheduled for August 6th, on the second anniversary of Bolivian independence celebrations.
He did not provide many details on the subject, but Rojas Ulo said the bank is considering the experiences of other international institutions.
According to local media, he said:
Preliminary work is being done in connection with advice received from international organizations. It also closely ties with other central banks in the region that are conducting tests of these types of cryptocurrencies.
Rojas Ulo highlighted the potential implementation of this currency to protect foreign currency, including the dollar, in cross-border payment scenarios. “It aims to modernize the payment system, and we may release the reserves as long as we can modernize the payment system, especially for cross-border payments,” he said.
He said the structured currency proposal will be revealed in August, when details of the “virtual Boliviano” are outlined.
The adoption of domestic digital assets has skyrocketed as the central bank allowed Bolivians to use bank accounts to purchase cryptocurrency, doubling that amount within just three months of lifting these restrictions.
Furthermore, the country faced a lack of foreign currency due to its restricted currency exchange policy, and opened the door to use stubcoins as a proxy for the dollar. In this connection, the country has admitted that it has set up a system that relies on cryptocurrency for energy imports, despite the transaction not being completed.
Nevertheless, Rojas Ulo's statement on upcoming digital currencies represents a significant national shift in crypto assets and policies surrounding their use.
Read more: Bitcoin from Bolivian Central Bank Anbans Bitcoin
Read more: Cryptocurrency trading volume doubles after lifting ban in Bolivia
