A bank for drug trafficking: Coca growers announced the creation of their own bank

The Six Federations of the Tropic of Cochabamba announced that  they will establish an exclusive bank for their region. The decision comes after the closure of several financial agencies, especially Banco Unión. They argue that the government is seeking to economically suffocate Chapare for political reasons.

They claim that without banking entities, they can't carry out exports or receive income. According to their leaders, they are being punished for supporting Evo Morales.

Dieter Mendoza, one of the main spokespersons for the sector, was the one who made the announcement official. He stated that "not only businesspeople or the oligarchy can have their own banks".

He added that his comrades also have the right to an independent financial institution. He emphasized that the objective is to support producers "economically hit" by the state. His message was delivered during a conference on Thursday night.

The coca growers claim that the closure of banks is part of a broader economic blockade. They also denounce the intention to cut basic services such as electricity and water in their region.

Mendoza accused the government of acting as  "an enemy of the people of the Tropic". He insisted that this situation is unacceptable and can't be allowed any longer. He promised that their struggle will continue until their rights are restored.

They can't export "their products"

In previous days, Evo Morales also referred to the issue. He accused President Luis Arce of applying measures similar to those of Trump against Palestine. He stated that his region is "isolated" due to the lack of financial institutions.

According to Morales, every attempt at export is halted for that reason. However, his message omitted mention of the blockades promoted by his supporters.

Within the framework of these protests, at least five deaths were reported. Four of the victims were police officers who were attempting to clear roads. There were also reports of attacks on ambulances and looting of public facilities.

Despite this, Morales downplayed the events and justified the actions of his followers. He said that the mobilization is a response to "hunger" and political exclusion.

Drug trafficking money

Meanwhile, harsh criticism of Chapare's banking initiative has emerged from the opposition. The departmental president of Libre in Santa Cruz, Ernesto Choco Serrate, denounced an attempt to launder drug trafficking money.

Serrate stated that the funds for the new bank will come from illegal activities. He warned that the so-called  "Chapare dollar" is already circulating as an irregular remittance. He called on the state to stop this plan, which, according to him, consolidates a parallel state.

In addition, Serrate maintained that this project reveals the true face of the coca growers' movement. He stated that it is not about economic inclusion but about shielding the millions from drug trafficking. He denounced that the lack of oversight will allow suspicious operations to be legitimized.

He also criticized the government's silence in the face of these warnings. He demanded that the authorities immediately investigate the origin of the funds.

The fear of banking entities

Meanwhile, several banking entities have already closed in the Tropic due to lack of security. The withdrawal of the police created an institutional vacuum that worries local residents.

According to local sources, there have been threats against law enforcement officers. This forced the withdrawal of special units to Cochabamba. As a result, many users have been left without access to basic financial services.

The blockades have also affected other regions such as Llallagua, where there were explosives and dynamited roads. In that locality, there were reports of looting at the police command and attacks on public buildings.

The situation worsens every day due to the lack of food and supplies. President Luis Arce himself warned of a collapse in hospitals and markets. Despite this, the protesters insist on maintaining the pressure.

In his latest public statement, Mendoza asserted that the pressure measures will not cease. He stated that repression will only strengthen their determination to continue. He said that creating their own bank is "an act of economic sovereignty".

He also assured that they will not allow the government to marginalize or silence them. "This is not going to stop", he reiterated emphatically to the media.

The proposal has caused concern in formal banking sectors. They warn that there are no technical or legal conditions to authorize an independent bank in that area. They also warn about the lack of transparency in resource management.

A measure to launder money from illicit activities

Several analysts fear a  rise in illicit operations disguised as commercial activity. The Financial System Supervisory Authority has not yet commented.

The government, meanwhile, remains silent regarding the coca growers' announcement. It has also not addressed the closure of agencies or the police withdrawal. The absence of an official statement increases the uncertainty.

Some sectors interpret this  silence as complicity. Others believe that the executive doesn't want to confront the Evista bloc directly.

While one group demands democracy with blockades, others suffer the consequences. The closed routes prevent the transit of ambulances and trucks carrying food.

The urban economy is beginning to feel the impact strongly. Amid the chaos, the coca growers are moving forward with their financial plan.

Experts warn that the country can't tolerate parallel structures. A bank with a questionable origin  could weaken the national financial system. There is also a risk that enclaves without state control could be consolidated.

The situation in Chapare has already exceeded political boundaries. Now it threatens to become a large-scale economic conflict.