Banco Bisa Launches First Crypto Custody Service in Bolivia

Banco Bisa Launches Pioneering Crypto Custody Service in Bolivia

In a groundbreaking move, Banco Bisa, one of the largest banks in Bolivia, has introduced a new crypto custody service, marking it as the first regulated financial institution in the country to offer such a feature. This innovative service is designed to support transactions in the stablecoin Tether (USDT), allowing customers to engage in buying, selling, and transferring cryptocurrencies directly through their bank accounts.

The Context of Currency Instability

This launch comes at a time when several Andean countries, including Bolivia, are facing economic challenges, with Bolivia experiencing its highest inflation rate in nearly a decade last month. These circumstances have elevated the demand for U.S. dollars, making this service especially relevant in today's economic climate.

Enhanced Financial Connectivity

According to Franco Urquidi, Banco Bisa's vice president of business, this new service will not only enable customers to manage their digital assets but also facilitate transactions for those looking to send money to relatives living abroad. Customers are required to go through a stringent verification process to ensure the security and reliability of transactions.

Key Features of Banco Bisa's Crypto Custody Service

• Storage: Customers can store USDT indefinitely.
• Transfers: The service allows for seamless transfers of funds abroad.
• Payments for Education: It aids in making payments for family members who are studying overseas.

Tether (USDT) is recognized as the largest stablecoin by market capitalization, and it has gained popularity among traders for its stability, making it easier to enter and exit trades without exposure to volatility.

Transaction Details and Costs

Banco Bisa's crypto custody service begins at a threshold of 200 USDT, with a maximum daily transaction limit set at 10,000 USDT. Transaction fees vary, ranging from:

• 35 bolivianos (US$5.07) to 100 bolivianos (US$14.48) for regular transactions.
• 280 bolivianos (US$40.55) for transfers to U.S. dollar accounts abroad.

At this time, it remains unclear whether Banco Bisa's crypto custody service will extend to everyday transactions at local merchants, as the bank has not yet responded to inquiries regarding this matter.

Conclusion

Banco Bisa's introduction of a crypto custody service is a significant advancement for the financial landscape in Bolivia, offering customers new opportunities for managing and transferring digital assets amidst economic uncertainty. As the demand for stable cryptocurrencies grows, innovations such as these are likely to reshape how individuals handle their finances in the region.