On Wednesday, Bolivia’s central bank announced that it had signed a formal agreement with El Salvador’s digital asset regulator, marking a significant step toward developing a legal and technical framework for cryptocurrency adoption in the Andean nation.

The Central Bank of Bolivia (BCB) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD) will collaborate on a broad range of crypto policy initiatives under the terms of a newly signed memorandum of understanding. The agreement includes joint work on blockchain intelligence tools, regulatory frameworks, and risk analysis models. It is open-ended and takes effect immediately.

The policy shift comes as crypto use accelerates in Bolivia. According to figures released by the BCB, digital asset transaction volume grew from $46.5 million in June 2024 to $294 million in June 2025, a more than sixfold increase following the passage of Decree No. 082/2024, which authorized broader use of cryptoassets across the country.

The new agreement draws on El Salvador’s experience as the first country to adopt bitcoin as legal tender and build a formal digital asset regulatory system. The CNAD, established after El Salvador’s 2021 Bitcoin Law, oversees the authorization of token offerings, the registration of digital asset service providers, and the supervision of crypto-related platforms.

BCB Acting President Edwin Rojas Ulo and CNAD President Juan Carlos Reyes García signed the agreement in La Paz. The two institutions will share best practices aimed at supporting Bolivia’s goal of building a transparent, inclusive, and well-regulated digital asset ecosystem, particularly for populations underserved by traditional finance.

While Bolivia has historically taken a cautious stance on crypto, the agreement signals a move toward gradual regulatory engagement rather than restriction. Officials emphasized that cooperation with El Salvador will help Bolivia modernize its financial infrastructure while safeguarding stability and promoting innovation.

The deal aligns Bolivia with a growing number of countries exploring tailored crypto regulations in response to rapid adoption, especially in Latin America. It also reinforces El Salvador’s role as a regional reference point for crypto integration at the institutional level.