El Salvador plans to establish a private Bitcoin Investment bank to help economy
El Salvador is advancing further into the crypto space with plans for a novel initiative aimed at launching a dedicated bank for crypto enthusiasts and investors.
Milena Mayorga, the country's representative to the USA, revealed on social media that the upcoming Bank for Private Investment (BPI) aims to broaden investment avenues for potential investors using both USD and Bitcoin.
This announcement comes in the wake of President Nayib Bukele beginning his second term of office, a staunch advocate for Bitcoin, moving swiftly to implement new policies as per his senior Bitcoin consultant Max Keiser's comments.
The proposed BPI seeks to grant Bitcoin investors an avenue to financial services with more leeway than traditional banking systems allow, bypassing many usual constraints, such as the inability to interact with foreign banks directly or issue substantial loans.
To get this bank off the ground, it’s stipulated that at least $50 million in base capital is needed, along with a minimum of two shareholders, which can include international investors. This facility anticipates conducting transactions in both fiat (USD) and Bitcoin and may petition for the right to operate as a digital asset service provider.
Driven by President Bukele and introduced by the Minister of Economy María Luisa Hayem, the proposal is still awaiting legislative approval and must undergo consultations and a vote by the Technology, Tourism, and Investment Commission.
By making Bitcoin legal tender in 2021, El Salvador carved a niche for itself in financial history. Despite facing challenges, Bukele’s approval ratings have soared, credited to his stringent measures against crime syndicates.
With the initiation of the BPI, El Salvador reiterates its dedication to merging Bitcoin into its fiscal strategies and beckoning cryptocurrency investments to propel the economy forward.
