Bitcoin
El Salvador will create Private Investment Bank for Crypto
El Salvador President Nayib Bukele, who is a well-known bitcoin supporter, is proposing the creation of a ‘Private Investment Bank’ to serve Bitcoin (BTC) and other foreign investors. The banking perspective, if approved, will offer greater financial services and fewer restrictions to cryptocurrency and dollar investors.
On June 14, the Ambassador of El Salvador to the United States, Milena Mayorga, announced the X proposal, highlighting the plan to create the Private Investment Bank (BPI). BPI intends to provide several financing options in both Dollars and Bitcoin.
Max Keiser, Senior Bitcoin Advisor at Bukele, also shared his supportmentioning Ark Invest CEO Cathie Wood’s prediction that El Salvador GDP could increase tenfold over the next five years. This announcement follows Bukele’s recent inauguration for another five-year term, following his landslide victory in February.
According to El Mundo, the proposed BPI will not face the same strict regulations as traditional banks. These include fewer restrictions on involvement with foreign banks or shareholder-linked financial companies. Loan restrictions will also be eliminated, allowing greater flexibility in granting credit and assuming risks.
To set up a BPI, a minimum share capital of US$50 million and at least two shareholders, who can be foreigners, are required. The new banks can operate in any legal tender, including the US dollar and Bitcoin, and can seek approval to become providers of digital assets and Bitcoin services.
El Salvador’s Minister of Economy, María Luisa Hayem, presented the reform to the Technology, Tourism and Investment Commission under Bukele’s direction. However, it has not yet been approved. Legislators did not summon officials to consult on the project’s objectives nor put it to a vote in the Commission.
If approved, these private investment banks could significantly boost El Salvador’s economy and further solidify its position as a Bitcoin-friendly nation.
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