Bolivian president Lewis Earth has signed an executive order banning the use of crypto assets for energy purchases, aiming to curb exchange cryptocurrencies like Binance and stable, ridiculous speculation.
Bolivia issues executive order to ban codes from energy settlements
Bolivia is a country that has recently shown some positive signs of integrating crypto into payments and financial systems, banning the use of crypto to resolve energy-related purchases.
This measure is part of a series of economic actions aimed at suppressing speculations about cryptocurrency exchanges, such as Binance.
Executive Order 5399 banning the state-owned oil company YPFB was enacted on May 23rd, from purchasing encryption to resolving payments.
President Lewis Ark said:
YPFB does not use crypto assets to carry out transactions. However, there is considerable speculation surrounding this issue, which affects exchange rate expectations. This measure eliminates that distortion.
YPFB President Armin Dorgathen emphasized that they did not use cryptocurrency in these transactions for two reasons. There is no counterparty acceptance of these assets in the oil industry, and there is no clear regulation to complete these exchanges.
“Today, YPFB does not use crypto assets. It’s not something we think about in the short term. Most companies still don’t accept them as a form of payment, so it’s unlikely that they can be used as a form of fuel payment,” he emphasized.
Finally, he also said that the amount negotiated in the national exchange was too low and illiquid to fund the necessary fuel purchases.
In March, Reuters reported that the YPFB is ready to use cryptocurrency to resolve energy payments due to a lack of foreign currency. Nevertheless, this measure rule out the possibility that this may happen, at least in the short term.
Read more: Bolivia, dollar-bound, relying on cryptocurrency for energy imports
