Bolivia’s crypto boom? Banco Bisa bets on USDT

Bolivia’s financial sector took a big step in crypto adoption as Banco Bisa unveiled a new custody service for virtual assets. The bank will allow clients to buy, sell, and transfer USDT safely. Its Vice President Franco Urquidi says all transactions will be conducted through Banco Bisa accounts for enhanced security.

Tether, the USDT issuer, is expanding its services all around the globe. The surge in its circulating supply reflects its ambitious adoption plan. USDT is currently the most dominant stablecoin with a 121.19 billion total supply. The second on that list, Circle’s USDC holds around 34.66 billion of circulation.

Banco Bisa raises crypto custody standards in Bolivia

According to reports, Banco Bisa launched a custody service for crypto where its clients can hold USDT, make international payments, and transfer funds abroad with ease. It added that all transactions are exclusive to Banco Bisa accounts, which it believes will enhance security.

“The sky is the limit,” says Franco Urquidi, VP of Business, as the bank eyes new functionalities in virtual assets. Tether’s USDT stablecoin, backed 1:1 with the US dollar, offers stability, especially for sending funds to relatives abroad or international payments.

The Financial System Supervision Authority (ASFI) director, Yvette Espinoza, praised this move. He said it positions Banco Bisa as a pioneer in regulated crypto custody and makes crypto safer for Bolivians.

Banco Bisa has even partnered with top custody and exchange platforms for data protection and compliance. Every customer is expected to undergo rigorous verification, which should make transactions secure.

With ASFI’s authorization for other banks to explore crypto services, Banco Bisa is setting the stage for a crypto-savvy Bolivia.

However, there is a cost of service tagged in. Selling USDT starts at 200 tokens, and daily limits go up to 10,000 USDT. Fees range from 35 to 100 bolivianos, which reportedly makes it an affordable choice for international transfers at a cost of Bs 280 (approximately $40).

The announcement is the latest big move announced by Tether. The firm’s CEO, Paolo Ardoino recently revealed Tether’s hefty reserves amid fresh scrutiny from U.S. authorities. He mentioned that reserves include $100 billion in US Treasuries, over 82,000 Bitcoin (worth $5.5B), and 48 tons of gold.

This came as a reaction to a recent Wall Street Journal article that claimed that Tether is under investigation for possible violations of U.S. anti-money laundering laws. Tether has reportedly aided law enforcement since 2014, helping recover around $109M linked to fraud, sanctions evasion, and cybercrime.