El Salvador Advances Plans for Bitcoin-Friendly Private Banks
El Salvador's President Nayib Bukele has proposed the creation of private investment banks to cater specifically to Bitcoin investors. This initiative aims to provide more financial services and fewer restrictions compared to traditional banks. The proposed Bank for Private Investment (BPI) would offer services in both U.S. dollars and Bitcoin and would not be subject to the same stringent regulations as conventional banks, including fewer restrictions on engaging with overseas banks or finance companies linked to shareholders.
The proposal, announced by Salvadoran Ambassador to the United States Milena Mayorga, requires legislative approval. If approved, these banks must have a minimum share capital of $50 million and at least two shareholders, who can be foreigners. The initiative is designed to attract both local and international investors, potentially boosting El Salvador’s economy and solidifying its reputation as a Bitcoin-friendly nation. However, the proposal has not yet been approved by relevant governmental bodies, including the Technology, Tourism, and Investment Commission.
