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The Central Bank of Bolivia has taken preliminary steps to implement an interbank wholesale CBDC, saying it could benefit the modernization and security of the country’s financial system. By contrast, a retail‑based system would offer limited benefits.
Central Bank of Bolivia Plans Implementation of Wholesale CBDC, Disregards Retail Focus
The Facts:
The Central Bank of Bolivia has issued the first report that evaluates the implementation of the digital boliviano, a national central bank digital currency (CBDC) to modernize Bolivia’s financial system.
In the report, the bank acknowledges that such a currency would allow private banks to optimize high-value transactions and revamp the sovereignty of the fiat currency, the Bolivian boliviano, in an increasingly digital ecosystem.
During this first phase, the bank considered that a wholesale, interbank currency would have a more useful implementation, given that it would optimize the internal processes of the payment system among financial actors.
The document issued on October 15 declares that, in opposition to the considered approach, a retail CBDC would have a reduced impact. “Considering the current level of development of the retail payment system in Bolivia, the additional benefits that a CBDC could offer in this segment could be limited in the short term,” the bank stressed.
The bank concluded that the eventual introduction of this CBDC would help consolidate a “safer, more competitive financial system aligned with international standards, preserving, above all, confidence in the national currency.”
Why It Is Relevant:
The start of a process to introduce a CBDC puts Bolivia at the forefront of digital innovation in Latam, behind other countries that already have advanced ongoing CBDC pilots, like Brazil.
The growing adoption of stablecoins, with trading volumes skyrocketing after the country opened the financial system in June 2024, could grow into an attack on Bolivian sovereignty. This implementation of a wholesale CBDC would shield the country’s financial network from sanctions of facing problems with current legacy payments providers.
Looking Forward:
This is just one of the first steps that the bank is taking towards issuing such a currency. The Central Bank of Bolivia is planning to meet with all the participants in the financial system and conduct a public survey to determine the needs to be satisfied by the CBDC.
The bank will issue a second report with these findings in Q4 2026.
FAQ 🧭
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What recent report did the Central Bank of Bolivia release?
The Central Bank issued its first report evaluating the implementation of the digital boliviano, a proposed central bank digital currency (CBDC) designed to modernize the financial system. -
What benefits does the report associate with a wholesale CBDC?
A wholesale CBDC could optimize high-value transactions among private banks and enhance the sovereignty of the Bolivian boliviano in a digital economy. -
What limitations did the bank identify regarding a retail CBDC?
The report indicated that a retail CBDC would offer limited benefits in the short term due to the current state of Bolivia’s retail payment system development. -
What are the next steps for the Central Bank regarding the digital boliviano?
The bank plans to consult with financial system participants and conduct a public survey to identify needs for the CBDC, with a second report expected in Q4 2026.
