news.bitcoin.com
Stablecoin demand and adoption are poised to increase in Bolivia, as a bank has presented a USDT service suite for the first time. Bisa Bank, a private institution, now allows customers to purchase, sell, and keep USDT funds in the bank, leveraging it for remittances and international payments.
First Bank in Bolivia Introduces USDT Services
Private institutions are now entering the cryptocurrency and stablecoins market in Bolivia. Bisa Bank, the fourth largest banking institution in the country, has recently introduced a suite of stablecoin products to allow customers to purchase, sell, and keep USDT using its services.
The inclusion of USDT as a dollar proxy stablecoin in the bank’s platform gives users an alternative to guarantee the safety and trust of users when managing this asset. This is the opinion of Yvette Espinoza, president of the banking system watchdog ASFI, who backed up this product launch.
Espinoza stated:
This is a custody service that will allow clients to carry out various operations safely, reducing the risk of unsafe interactions in the cryptocurrency market.
Bisa Bank will charge customers fees from $5 to $15 for stablecoin purchases between 200 and 10,000 USDT daily. USDT transfers to international accounts will cost nearly $40, which represents an attractive option for those interested in making these kinds of payments with the backing of a banking institution.
Bisa Bank Business Vicepresident Franco Urquidi highlighted that these operations would be completed from and to a Bisa Bank account, meaning they are secure. “Our customers go through a rigorous verification process, giving them peace of mind that their transactions are carried out through secure and reliable channels,” he stressed.
USDT’s implementation by Bisa Bank reinforces the position that the largest dollar-pegged stablecoin, which recently reached a market cap of over $120 billion, has in emerging countries that lack direct dollar access. Bolivia has a fixed exchange rate on the dollar, resulting in speculation attacks linked to dollar scarcity. Last year, the central bank sold dollars directly to citizens to appease the local market.
Read more: Central Bank of Bolivia Selling Dollars Directly to Citizens as Devaluation Fears Rise
The rise in crypto and stablecoin usage sparked out of the central bank’s actions, which unbanned bitcoin and other cryptocurrencies from being used in conjunction with the national banking system in June. Crypto volumes have more than doubled after this.
Read more: Central Bank of Bolivia Unbans Bitcoin From the Nation’s Financial Ecosystem
Writers’ take: Latam’s stablecoin adoption will keep growing as long as countries set boundaries on purchasing and managing U.S. dollars. The U.S. dollar continues to be a good reserve asset in economies affected by inflation and devaluation, and any asset serving as a trusted proxy will be swiftly implemented.
To follow all the latest developments in crypto and the economy in Latin America, sign up for our Latam Insights newsletter below.