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Banco Bisa, one of Bolivia’s largest banks, announced last week the launch of its crypto custody service, making it the first regulated financial institution in the country to do so.
Solely supporting the stablecoin Tether (USDT), the service enables customers to buy, sell, and transfer crypto directly through their bank accounts, local media reported Thursday.
It follows a weakening currency in Andean countries. Last month, inflation in the country hit its highest point in nearly 10 years, driving up the demand for U.S. dollars.
Banco Bisa’s vice president of business, Franco Urquidi, told local press at the time the function would allow people to send money to relatives abroad.
“Our clients go through a rigorous verification process, giving them peace of mind that their transactions are carried out through secure and reliable channels,” Urquidi said, per a rough translation of local media reports.
The service allows customers to store USDT indefinitely, transfer funds abroad, and facilitate payments for family members studying overseas.
USDT is the largest stablecoin by market capitalization and the backbone of the crypto economy, mainly because it is so widely used by traders to enter and exit trades.
Stablecoins are a type of digital token pegged to a currency or commodity—typically U.S. dollars or gold.
It’s unclear whether Banco Bisa’s service will be available for everyday transactions at local merchants. The bank did not immediately respond to a request for comment.
In any case, the service starts at 200 USDT up to a daily limit of 10,000 USDT, with fees ranging between 35 (US$5.07) and 100 bolivianos ($US14.48). Transfers to U.S. dollar accounts abroad incur a charge of 280 bolivianos (US$40.55), per the reports.
By Latin American standards, Bolivia is a quiet nation in terms of crypto adoption: Bitcoin miners aren’t eyeing up the landlocked country like they are in Paraguay, and the asset class’ reception is nothing compared to neighboring Brazil or Argentina.
The country also doesn’t receive anywhere near the amount of crypto via remittances that other nations in the region do, Chainalysis has found.
Edited by Sebastian Sinclair