Bolivia plans to launch a Central Bank digital currency (CBDC) called “Virtual Bolivian” in August, as part of the Bicentennial celebrations, as announced by the Central Bank of Bolivia (BCB). The initiative seeks to modernize the country’s payment system, said Edwin Rojas, president of the BCB.
According to the Executive, the BCB has been working on the design of the Virtual Bolivian for months, with the aim of facilitating digital transactions and expediting international payments. Rojas, during the XVIII Monetary Day of the Bank, highlighted that the digital currency It will be a step towards economic modernizationaligned with global financial digitalization trends.
Although technical details have not been revealed, the project would officially occur in August, coinciding with the 200 years of independence of Bolivia. The announcement has generated debate, especially for the history of the country with cryptocurrencies and concerns about the centralization of a CBDC.
“The Central Bank of Bolivia has made significant advances in the preliminary design of a digital CBDC currency. Providing a coordinated approach between the technical, legal and systems area. In this context, internal workshops and work tables were developed to make a diagnosis for the implementation of a digital currency in Bolivia,” he said.
The executive added that have trained the staff of the Central Bank of Bolivia in international organizations such as the International Monetary Fund and the CEMLA, and strategic issues such as design and regulation, cybersecurity and monetary impacts were analyzed.
“These actions allow to have an initial baseline for the issuance of a CBDC by the Central Bank of Bolivia, which allows validating its operation and functionality with a view to strengthening financial inclusion and accompanying the country’s digital transformation process to achieve the proposed objectives,” he said.
Deputy Mariela Baldivieso, known for her Pro-Bitcoin and cryptocurrency position, Consider That the proposal could be positive, but its success depends on the government that implements it. In authoritarian contexts, he warns, A CBDC could become a financial control and surveillance tool.
Baldivieso, in a recent interview, expressed a cautious optimism. “It could be a very positive tool in first world countries such as Switzerland, where there is no corruption or political persecution,” he said. However, in governments such as Bolivia or Venezuela, he said that a centralized digital currency It could be used to exert political or economic pressure.
“If an authoritarian government is behind, you could give these currencies and limit their use to certain places, controlling citizens,” he explained. The legislator stressed that, unlike decentralized cryptocurrencies based on distributed networks, A CBDC lacks the virtue of autonomy, which increases the risk of abuse.
Bolivia has been approaching cryptocurrencies for months
Bolivia has shown a gradual approach to cryptocurrencies in the last year. As cryptootics reported, transactions with digital assets in the country reached 75 million dollars in 2024, reflecting a growing interest in these instruments.
This increase is attributed to the search for alternatives before the devaluation of the Bolivian and inflation. Even the government has resorted to cryptocurrencies for specific purposes, for example, to import fuel, in an attempt to overcome restrictions on access to dollars. These actions show a change in the official position, which had previously been restrictive towards cryptocurrencies.
The rise of the stablecoins, digital currencies linked to assets such as the dollar, has also gained ground in Bolivia. Cryptonotics reported that these currencies are promoting a “redolarization” in the country, especially in a context of economic crisis.
Citizens resort to Stablecoins to protect their savings and make transactions, given the loss of value of the Bolivian. This phenomenon reflects a broader trend in Latin America, where digital currencies offer an alternative to unstable local currencies.
The announcement of the Bolivian Virtual arrives at a time of polarization. Baldivieso stressed the importance of analyzing the project thoroughly before issuing definitive judgments. “We have not seen the technical details, and hopefully the government flexible its control to be a viable initiative,” he said. The legislator too advocated incorporating the study of financial technologies in educationto prepare professionals in the face of the challenges of the digital economy.
International experiences with CBDC offer mixed lessons. Countries like China and Venezuela have implemented digital currencies with limited results. Yuan Digital, for example, has not achieved mass adoption; while the already missing Venezuelan Petro became criticized for its use as a state control tool.
Baldivieso warned that, without transparency and without a clear regulatory framework, The virtual Bolivian could face similar problems. “A CBDC is traceable and transparent, but that also means that a government can track each transaction and accuse someone of illicit activities without evidence,” he said.
The debate about the Bolivian Virtual barely begins. While the BCB advances in its design, Bolivian society expects more clarity about how the currency will work And what implications will have. For Baldivieso, the challenge lies in balancing innovation with the protection of individual freedoms. “If the government releases control a bit, it could be a good initiative,” he concluded.
The launch in August will mark a mile Tool that benefits the economy without compromising the rights of Bolivians.
