1865 Bolivia - Coin Or Medal?

The simplest answer to your question is "yes".

It is a "proclamation coin", part of an extensive series of Spanish and Spanish-American coin-like medals (or medallic coins, depending on your point of view) designed to commemorate or "proclaim" important events. Back in the days before the Internet, television or even newspapers, important events (like the coronation of a new king) were proclaimed by official criers on the street corners. As part of the proclamation ceremony, the tradition arose in Spain and was continued in the Spanish colonies that coins or coin-like medals would be given away, to help people remember the event. These medals were usually privately commissioned by a wealthy resident of the city or town where the proclamation took place, though they were more often than not struck in the official government mints, using ordinary coinage blanks so the coins weighed the same as ordinary coins. They were intended as keepsakes if you wanted to keep them, or if you wished you could spend them as money. Back in those days, silver was silver and as long as the proclamation coin was recognised as being good silver, it was accepted as a coin.

Proclamation coins fall into the gap between "coins", "tokens" and "medals", sharing aspects of all three yet not neatly falling into any of those categories. Because of the very large numbers of different types of these privately-commissioned coins, and because of the unofficial, semi-official or quasi-official nature, they are not usually included in the coin catalogues. There are specialised catalogues that list them.