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Bolivian Bank Introduces USDT Custody Service

DATE POSTED:October 28, 2024
Key Takeaways
  • The bank plans to charge fees between $5 and $15 for stablecoin purchases ranging from $200 to $10,000, 
  • International transfers of USDT will cost nearly $40

Banco Bisa, one of the Bolivia’s largest banks, has launched a new custody service for USDt (USDT), allowing customers to buy, sell, and transfer crypto directly through the bank. 

The newly introduced service will enable users to hold USDT, send money to relatives, and make cross-border transactions. Franco Urquidi, Vice President of Business at Banco Bisa, highlighted the importance of security in this initiative. “Customers will undergo a verification process to ensure that their transactions are conducted safely,” he stated.

Yvette Espinoza, a representative from the Autoridad de Supervisión del Sistema Financiero (ASFI), expressed support for the bank’s offering. She noted that this service allows clients to conduct crypto transactions within a regulated framework, reducing risks associated with the volatile cryptocurrency market.

Historically, Bolivia has maintained a strict stance on cryptocurrencies. In 2014, the government implemented a ban on digital currencies, labeling any currency not issued or regulated by the state as illegal. This decision aimed to safeguard the national currency and protect citizens from potential losses linked to unregulated currencies like Bitcoin (BTC).

However, Bolivia began to reconsider its approach to crypto in 2024. On June 28, the government lifted the ban on BTC and crypto payments, allowing financial institutions to engage in transactions involving digital assets.  On September 27, Banco Central de Bolivia, stated a 100% rise in virtual asset trading since it lifted its BTC and crypto payments ban. The central bank added that around $15.6 million in crypto was traded monthly on average between the months of July and September. 

Since the ban was lifted, the Central Bank of Bolivia has reported a dramatic increase in virtual asset trading. As of September 27, the volume of crypto trading had surged, with an average of $15.6 million in monthly transactions from July to September.

Espinoza emphasized that the integration of USDT as a dollar-pegged stablecoin offers customers a trustworthy means of managing their assets.

The bank plans to charge fees between $5 and $15 for stablecoin purchases ranging from $200 to $10,000, while international transfers of USDT will cost nearly $40. This pricing structure presents an appealing option for individuals interested in making cross-border payments through a trusted banking channel.

Espinoza expressed optimism about Banco Bisa’s initiative, noting that it would enhance liquidity and security for users. “This custody service will allow clients to perform various operations safely, minimizing the risk of unsafe interactions in the cryptocurrency market,” she remarked.