tl;dr
Banco Bisa, one of Bolivia’s largest banks, has launched a crypto custody service, becoming the first regulated financial institution in the country to do so. The service supports the stablecoin Tether (USDT) and allows customers to buy, sell, and transfer crypto directly through their bank accounts...
Banco Bisa, Bolivia's largest bank, has launched a regulated crypto custody service, supporting the USDT stablecoin for buying, selling, and transferring crypto through bank accounts. This move comes amidst rising demand for U.S. dollars.
The service allows indefinite USDT storage, international fund transfers, and payments for overseas family members. Fees range from 35 to 100 bolivianos, with additional charges for transfers to U.S. dollar accounts abroad.
Despite Bolivia's relatively low crypto adoption compared to neighboring countries, Banco Bisa's initiative reflects the growing influence of crypto in the region. This marks the first regulated financial institution in Bolivia to offer such a service, indicating a shift in the country's financial landscape.
The launch of this service follows a weakening currency in Andean countries, with inflation in Bolivia reaching its highest point in nearly a decade. This has driven up the demand for U.S. dollars, prompting financial institutions like Banco Bisa to adapt to the evolving market demands.
It remains unclear whether the service will be available for everyday transactions at local merchants, but the introduction of crypto custody by a major bank sets a significant precedent for the intersection of traditional finance and the burgeoning crypto ecosystem.
Overall, while Bolivia may not currently be a hotspot for crypto activities, Banco Bisa's foray into crypto custody underscores the broader trend of financial institutions adapting to the changing landscape of digital assets. This move aligns with the global trajectory towards integrating cryptocurrencies into mainstream financial services.