An El Salvador Bitcoin Bank Will Go Live This Year

YEREVAN (CoinChapter.com) — An El Salvador Bitcoin bank appears like a huge possibility following President Nayib Bukele’s proposal to boost financial services in both BTC and the U.S. dollar.

Milena Mayorga, the Salvadoran Ambassador to the United States, shared the news on June 14 in a post 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,”

Mayorga wrote.

El Salvador’s Bitcoin Bank Plan Under Bukele’s Second Term

President Bukele recently started his second five-year term after a decisive victory in February. He introduced legislation to establish a Bitcoin Bank.

According to a report by El Mundo, the proposed Bank for Private Investment (BPI) would not be subject to the same stringent laws as traditional banks. This includes restrictions on engaging with overseas banks or finance companies linked to their shareholders. Additionally, loan restrictions will be removed.

Max Keiser, a senior Bitcoin advisor to Bukele, noted that this move aligns with Ark Invest CEO Cathie Wood’s prediction that El Salvador’s real GDP could increase substantially in the next five years.

Investment Bank Proposal: Key Requirements and Legal Steps

If approved, the new private investment banks must be created with a minimum share capital of $50 million. At least two shareholders are required, and they can be foreigners. This opens the door for international investment in El Salvador’s banking sector.

The BPI would operate in any legal tender, including the US Dollar and Bitcoin. It could also seek approval to become a digital asset and Bitcoin service provider, further integrating Bitcoin into El Salvador’s financial system.

El Salvador’s Minister of Economy, María Luisa Hayem, proposed the reform to the Technology, Tourism, and Investment Commission. However, it has not yet been approved.

“The reform has not been approved; The legislators have not yet agreed to call officials to consult the objectives of the project nor have they put it to a vote in the Commission,”

the report stated.

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