El Salvador Crypto Law Allows Bitcoin Investment Banking Boosting Bitcoin Ante in South America

Key Takeaways

• El Salvador proposed a new law allowing private banks to offer Bitcoin and crypto services, targeting wealthy investors.
• Only “sophisticated investors” could access these banks, with strict requirements for establishing them.
• El Salvador planned to move a portion of its national Bitcoin holdings to a secure, offline vault within the country.

The Salvadoran government has proposed an initiative aimed at expediting the integration of Bitcoin and other cryptocurrencies into its investment banking sector.

A banking law reform introduced to the National Assembly seeks to permit private investors to establish banks capable of offering services in Bitcoin and stablecoins specifically targeting sophisticated investors.

Beyond ATMs: El Salvador Proposes Bitcoin Investment Banking

Bitcoin adoption is poised for a new surge in El Salvador. The Salvadoran government has proposed a reform to the banking law, introducing a new type of bank that can offer Bitcoin and cryptocurrency services.

On June 13, the banking bill reform was presented to the Technology, Tourism, and Investment Commission of the National Assembly. The proposal includes 14 new articles defining Private Investment Banks (PIB) as essential instruments that promote economic development and channel financial resources into business and government projects.

If approved, this initiative will enable the establishment of banks that can provide various services such as economic risk management, financial product purchases, investment management, hedging, and other financial derivatives. These services will support any legal tender in El Salvador, including the US dollar and Bitcoin.

Bitcoin Banks for the Wealthy Aim for Growth