The Salvadoran government recently proposed a law to create private investment banks using Bitcoin. This initiative comes only 2 weeks after the re-election of Nayib Bukele, consolidating his mandate for 5 years and strengthening the integration of Bitcoin into the country's financial system.
Banks that use Bitcoin in El Salvador
Since El Salvador adopted Bitcoin as legal tender 3 years ago, the government has first focused on creating infrastructure and applications that allow the local population to access the tools needed to use of Bitcoin.
Then, Nayib Bukele and his government introduced Bitcoin into schools, where it is taught through initiatives like Node Nation and the Cubo+ program. El Salvador has also worked to institutionalize BTC by seeking to issue bonds in this new currency and creating special visas for investors and Bitcoin enthusiasts.
👉 Do you know Discover Bitcoin? This team of French speakers who work with the government of El Salvador to teach Bitcoin in schools.
Last weekend, the Salvadoran government has proposed the creation of a private investment bank allowing qualified holders of Bitcoins to use it through various services similar to those of traditional finance.
According to the bill, the government considers private investment banks as a tool that “facilitates the efficient directing of financial resources toward entrepreneurial and government projects, which ultimately increases the wealth of the nation. »
On this occasion, Milena Mayorga, the ambassador of El Salvador to the United States, spoke on the subject in a publication on X.
As part of our economic plan for El Salvador, we propose a BPI, Bank for Private Investment, where we can diversify the financing options offered to potential investors in Dollars and #Bitcoin. 🚀#BitcoinBank#EconomicFreedom https://t.co/3hfwVvTSeX
— Milena Mayorga (@MilenaMayorga) June 14, 2024
“As part of our economic plan for El Salvador, we are proposing a BPI, Private Investment Bank, where we can diversify the financing options available to potential investors in dollars and Bitcoin. »
The bill would change a lot of things for these private investment banks:
- They must have with a minimum share capital of 50 million dollars and at least 2 local or foreign shareholders;
- They will be authorized to receive funds only from sophisticated investors ;
- They will be able to operate in dollars and Bitcoin as well as serving as digital asset service providers;
- They will have authorization to enter into contracts with foreign financial institutions linked to their shareholders ;
- They will not be required to have at least 51% Central American investors.
👉 Also read in the news: The price of Bitcoin (BTC) is at its lowest in a month – The bull run is slipping?
This bill, proposed by Bukele's government, comes only 2 weeks after the re-election of the outgoing president with 85% of the votes. Nayib Bukele is therefore head of the Salvadoran state for the next 5 years.
Ledger: the best solution to protect your cryptocurrencies
Source: bill
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no harm to you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to cryptoassets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.