What changes for bitcoin in Bolivia with the election of Rodrigo Paz as president?

The victory of Rodrigo Paz Pereira in the Bolivian presidential elections, with an overwhelming 54.5% of the votes in the second round, marks a decisive point that puts an end to almost two decades of dominance by the Movement towards Socialism (MAS).

For the bitcoin (BTC) and cryptocurrency community, this turn symbolizes a profound political change and positions Paz as a potential ally of the pioneering digital currency, as celebrated by some users on social networks for its 50/50 Agenda.

Paz’s victory, in a context of pressing economic crisis characterized by 7.8% inflation and a severe shortage of foreign currency, opens the doors to digital assets. This through a potential regulated integration into the state agenda, marking the beginning of a new era.

Although the magnitude of the coming change and the scope of the adoption of bitcoin and cryptoassets are still uncertain, Paz’s proposal positions these assets as key tools for transparency and monetary sovereigntyraising the question: could Bolivia become a “Bolivian El Salvador” for bitcoin?

In the past, the Andean country maintained one of the most restrictive positions towards digital assets in the region. This is because, since 2014, the Central Bank of Bolivia (BCB) has banned its use, citing risks of money laundering and excessive volatility.

The ban was tightened in 2018 by equating digital assets with “financial pyramids.” However, this official ban did not prevent growing underground adoption, driven by economic necessity.

Then, in 2024, after a decade of banning digital asset trading, Bolivia’s outgoing government finally lifted the veto. This decision paved the way for an expansion in transaction volume, which skyrocketed 630% in the subsequent months, as reported by CriptoNoticias in its immediate coverage.

Now, Paz Pereira emerges as a central figure in this new chapter for Bolivia. A trained economist and former senator of the Christian Democratic Party (PDC), Paz has cultivated a centrist and technocratic image.

His proposal, anchored in his government plan, seeks to rebalance public spending. It also seeks to stabilize a battered economy, positioning itself as the architect of a transformation that could redefine the role of technology in Bolivian governance.

But why is Paz seen as a pro-bitcoin president and what changes are coming for the sector?

Your key changes:

1.- Bitcoin technology to gain transparency

The 50/50 Peace Agenda allocates 50% of public spending to state efficiency. Considers this as a fundamental pillar of integrating the use of Distributed Ledger Technology (DLT), better known as blockchain, in public procurement processes.

This radical shift contrasts strongly with the model of the previous government, which was characterized by high discretion and vulnerability to corruption. This in processes that annually manage around 2,000 million dollars in acquisitions.

The adoption of smart contracts would seek to automate and make these processes transparent. Their idea is to eliminate friction points conducive to bribery.

Some analysts they pointed out that Paz’s proposals gained visibility from business sectors and investors. They would have had their eye on the emphasis he placed on fiscal stability, transparency in governance and a potential model role for Bolivia in democratic renewal.

However, challenges lie in staff training, the necessary technological infrastructure, and the resistance of groups that benefit from the current system.

2.-Cryptoassets in an Exchange Stabilization Fund

Another transformative pillar of the Paz government will be the creation of an Exchange Stabilization Fund. This focuses on a fiscal mechanism to unify the exchange rate of the national currency, the Bolivian (BOB).

The fund will be funded, in part, by “asset disclosures”—voluntary declarations of hidden assets, including digital assets like bitcoin.

The resources, negotiated with multilateral institutions, They would seek to combat the persistent devaluation of the Bolivian —who has lost a 130% of its value in 2025—.

The fiscal mechanism generates income for the State without it directly acquiring the assets. And although nothing has been officially mentioned, until now. It may be that once Rodrigo Paz takes office as president, he will not contemplate a state reserve of bitcoin, like the one that El Salvador and other countries have.

Additionally, after ruling out financing from the International Monetary Fund (IMF), Paz has said that the State’s resources are enough “if they don’t steal.” In fact, in his plan to reduce the deficit, he anticipates using pre-approved credits from multilaterals to promote an open economy. This, without the need for new loans.

However, his negotiations with multilaterals could take his government in other directions. This is because these organizations usually condition loans on conservative policies. And, in this scenario, a bitcoin reserve could be seen as an obstacle, similar to criticism received by El Salvador, delaying or canceling support.

In any case, the implementation of the Peace agenda will face multiple challenges. Despite its presidential victory, the PDC does not have a legislative majority. With this, he would be forced to negotiate and forge alliances with other political sectors to approve his reforms. The fiscal deficit and potential social resistance to certain economic measures could generate protests and slow the pace of change.

In addition, the Central Bank of Bolivia (BCB), an institution historically reluctant to bitcoin and cryptocurrenciescould present strong resistance to the formalization of the pioneering digital currency, prioritizing the maintenance of the US dollar as the main reference currency.

«Bitcoin is the certainty of having heritage that cannot be expropriated»

In a context of rampant inflation and a shortage of foreign currency that has reduced the purchasing power of Bolivians, bitcoin stands as an accessible and sovereign financial refuge. This is how Juan Pablo Crespo Vargas, co-founder of Bitcoin Research Bolivia, one of the fastest growing communities on this digital currency in Latin America, perceives it.

In conversation with CriptoNoticias, Crespo Vargas said that he hopes that the new government will improve the country’s economic situation. Although what he wishes most is that the new government grant freedom to Bolivians so they can save and have custody in bitcoin without any complications.

He, as a Bolivian, speaks of bitcoin as a solution that offers those without access to banking “a spectacular solution” and the possibility of “having assets that cannot be expropriated.”

For Crespo Vargas, the rise of Paz Pereira represents the germ of an “orange revolution” in the Andean country — a metaphor inspired by the historical Orange Revolution of Ukraine in 2004, where massive protests against electoral fraud toppled an authoritarian regime and paved the way for more transparent, Western democratic reforms.

Although this horizon of political and economic change is hopeful, with promises of greater financial inclusion via digital assets, Crespo says it is clear that it will be a path dotted with obstacles.

However, he also said he was convinced that nothing will disrupt the growth of the bitcoiner community in Bolivian lands. It will also not be possible to stop the adoption of BTC in this Andean country.

Their optimism is based, among other factors, on the recent correction in the price of BTC, after reaching a new all-time high. After which the attraction that Bolivians feel for the currency created by Satoshi Nakamoto has not diminished.

Faced with the crisis—with prices skyrocketing due to inflation and energy subsidies in check—families are choosing to cut expenses and look for alternatives.

But, due to ignorance, many do not look at BTC as an alternative. “It is a common mistake,” according to Crespo.

“Many people ask ‘but don’t I have $100,000 to buy a bitcoin?'” And that is why Bitcoin Research undertakes an educational campaign.

«It is important to understand that it is not necessary to have a large amount of money. “You can start saving from one boliviano, with a small fraction of bitcoin,” he noted.

Crespo sees in the post-electoral context a “much more interesting environment” to relearn savings. «The best hard money ever created in history is available to everyone, and it is very easy to access; “You don’t have to have documentation,” he argues, especially for the unbanked — a majority segment in Bolivia.

Crespo reiterates the call for education: “I think that now we are in a much more interesting environment for people to learn the basics of saving again.”

So, while Paz takes office on November 8, community members like Crespo are betting on bitcoin. They believe that digital currency is necessary to survive the crisis, and transform it into opportunity in Boliviaalthough this is a change that comes individually.