Cryptocurrency Market Gains Momentum as More Banks Offer Custody and Transfer Services

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The cryptocurrency market in Bolivia is experiencing significant growth and dynamism, with increasing numbers of financial institutions offering secure custody and transfer services. Following Banco Bisa's lead, Banco de Crédito BCP has now entered this expanding market.

Bank-Backed Crypto Services Emerge

BCP recently introduced a service allowing clients to make international transfers directly from Bolivian Boliviano accounts through automatic conversion to USDT (Tether USD). This stablecoin maintains a 1:1 value ratio with the US dollar, providing stability uncommon in most cryptocurrencies.

Key features of BCP's service include:

"Mobile banking users can now support family abroad or meet international obligations with unprecedented ease," stated BCP General Manager Christian Hausherr.

Understanding USDT: The Gateway Stablecoin

USDT represents a hybrid financial instrument:

This dual nature allows users to:

  1. Conduct cross-border transfers
  2. Utilize institutional-grade custody services
  3. Avoid cryptocurrency volatility

👉 Discover how stablecoins revolutionize cross-border payments

Banco Bisa Pioneers Crypto Custody

In October 2024, Banco Bisa launched "Criptobisa," Bolivia's first institutional crypto service offering:

"From education payments to medical treatments abroad, we're eliminating traditional barriers," explained Franco Urquidi, Banco Bisa's VP of National Business.

Service parameters:

Regulatory Landscape Shifts

The Central Bank of Bolivia (BCB) marked a turning point with Resolution 084/2024 on June 26, 2024, lifting the 2020 cryptocurrency ban. Recent data reveals:

Nine financial intermediaries now facilitate crypto transactions, handling over 20.7 million bolivianos monthly—a 3,500% increase since July.

How Banks Are Implementing Crypto Solutions

Account Setup Process (BCP Example)

  1. Access mobile banking via Android
  2. Select USDT account opening
  3. Accept terms and verify identity
  4. Confirm with OTP authentication

Transfer Execution

  1. Choose "International Transfer"
  2. Input beneficiary details
  3. Specify amount and destination
  4. Verify with security token

👉 Explore institutional crypto adoption worldwide

FAQ: Understanding Bolivia's Crypto Banking

Q: Are crypto transfers safer through banks?
A: Yes, institutional services provide regulatory compliance and insurance protections absent in peer-to-peer platforms.

Q: What's the advantage of USDT over traditional transfers?
A: Faster settlement (minutes vs. days), lower costs, and 24/7 availability without intermediary banks.

Q: How volatile is USDT?
A: Maintains <1% fluctuation, as it's fully backed by dollar reserves audited monthly.

Q: Can I use these services for business transactions?
A: Absolutely—many importers and exporters now utilize bank-mediated crypto for supplier payments.

Q: What happens if USDT loses its peg?