El Salvador President Nayib Bukele has put forth a groundbreaking proposal for the establishment of a private investment bank dedicated to serving Bitcoin (BTC) investors, signaling a new move in the world of cryptocurrency. This initiative is designed to alleviate the restrictions currently imposed by traditional banking institutions.
The proposed bank will offer investors the opportunity to engage in trading activities involving both US dollars and Bitcoin, potentially positioning itself as a key player in the realm of digital assets and Bitcoin services. El Salvador’s Ambassador to the United States, Milena Mayorga, highlighted the significance of this proposal within the country’s economic development plan, stating, “As part of our economic plan for El Salvador, we are proposing a BPI, a Private Investment Bank, through which we can diversify the financing options available to potential investors in Dollars and Bitcoin.”
The reform bill associated with this proposal outlines specific criteria for expert investors, who must possess a certain level of investment experience, risk assessment skills, and a minimum amount of readily available assets. Private investment banks will have the flexibility to engage in trading activities involving various fiat currencies, including dollars and Bitcoin, and may also seek authorization to offer digital asset services.
Furthermore, according to the reform project, private investment banks will not be subject to certain restrictions outlined in the existing Banking Law. For example, they will be exempt from limitations such as the prohibition on providing loans or assuming risks exceeding a certain percentage of the Wealth Fund. Additionally, restrictions on lending amounts to individuals abroad will not apply to loans issued by private investment banks.
It is important to note that the information provided in this article is for informational purposes only and should not be construed as investment advice. For those interested in investing in a wide range of cryptocurrencies, registration with the Binance exchange is recommended, offering a 20% commission discount through the provided link. Stay updated on the latest news, analytics, and on-chain data by following our Telegram and Twitter accounts.
