The Central Bank of Bolivia (BCB) presented its “First Report on the Digital Boliviano”, a study that evaluates the viability of issuing an electronic version of the country’s official currency.
According to the entity, the document constitutes “a comprehensive diagnosis on the possible issuance of a Central Bank Digital Currency”, which would position Bolivia within the international panorama in the development of this type of technologies. From the institution they affirm that The progress of the project can be followed in real time through the site cbdctracker.orgwhich monitors the progress of each country in this area.
Thus, the report analyzes the sustainability of a Central Bank Digital Currency (CBDC), considering how solid the national payment system is, the interoperability between financial entities and the advances in financial inclusion that have been achieved in recent years.
The B.C.B. stood out that the preparation of the study was the result of an “exhaustive process of analysis, review and institutional coordination with international organizations and public sector entities.”
The institution intends that this work be the starting point for a process of dialogue and socialization with the different actors of the financial ecosystemthe public and private sectors, universities and society in general, with the aim of “enriching the analysis and generating discussion about the implementation of this type of financial innovation in the country.”
According to what was published, a CBDC “should not be considered an immediate solution, but rather a long-term project that, properly designed, can benefit the economy and society.”
Before considering the issuance of the digital Boliviano at the national level, the central bank proposes a gradual and structured process. The roadmap prioritizes technical analysis, consultation with key actors and the execution of controlled pilotswith special attention to strengthening cybersecurity and the management of technological incidents.
Along these lines, the development of the initiative contemplates a multi-sector dialogue between Bolivia’s main financial regulator, private financial entities, technological actors and the general public, in order to define priority use cases, design principles and a common agenda for functional prototypes.
Besides, A survey will be launched to collect the perceptions and suggestions of potential userswith the aim of adjusting the design of the digital currency according to real needs.
Likewise, the analysis highlights international experiences in Asia, Africa and Latin America, stating that in many territories digital payment solutions have allowed previously excluded populations to access basic financial services through mobile phones and digital wallets, and that these benefits have been visible in rural areas and among low-income populations.
Among its conclusions, the BCB emphasizes that the implementation of a wholesale CBDC, such as the digital Boliviano, requires a gradual, participatory and evidence-based approach. The proposed roadmap includes prototyping phases, controlled tests and supervised pilots, along with consultation with financial entities and technology providers, to validate technical assumptions, mitigate risks and ensure that each stage is built on previous learning.
Among the projected benefits, the report highlights the improvement in the execution of monetary policy, the automation of liquidity and public debt processes, regional interoperability for cross-border payments, and the adoption of advanced monitoring and digital governance schemes.
However, challenges such as cybersecurity, interoperability with existing infrastructures and potential operational concentration are noted, so The success of the project, in the opinion of the organization, will depend on disciplined implementationlong-term strategic vision and consensus building through consultation and transparency with all actors involved.
Bolivia is currently facing significant economic challenges, including a lack of dollars, which, as CriptoNoticias reported, has led to a boom in bitcoin (BTC) adoption. According to BCB figures, the volume of operations with the asset shot up 630% in just one year, reaching 430 million dollars.