El Salvador’s President Nayib Bukele, a strong supporter of Bitcoin, is pushing for the creation of private investment banks in the country. If this proposal is accepted, these banks will provide Bitcoin investors with access to financial services and fewer restrictions compared to traditional banks.
In a post on X on June 14, Salvadoran Ambassador to the United States, Milena Mayorga, outlined the plan for a Bank for Private Investment (BPI) as part of El Salvador’s economic strategy. This move was also supported by Max Keiser, a senior Bitcoin advisor to Bukele, who highlighted the potential growth of El Salvador’s real GDP based on predictions by Ark Invest CEO Cathie Wood.
Bukele, who recently began his second term as president after a landslide victory in February, is aiming to establish the BPI to operate with more flexibility than traditional banks. The BPI will not be subject to the same strict regulations, including limitations on dealing with foreign banks or finance companies associated with shareholders or business groups. Additionally, restrictions on loans will be lifted.
If approved, the BPI must have a minimum share capital of $50 million and at least two shareholders, who can be foreigners. The new private investment banks will be allowed to operate in any legal tender, including the US Dollar and Bitcoin, and could potentially offer digital asset and Bitcoin services.
The proposal for the BPI was introduced by El Salvador’s Minister of Economy, María Luisa Hayem, under Bukele’s guidance. However, it has not yet been approved by legislators. Despite the potential benefits of the new investment banks, the reform still requires further discussion and approval.
Overall, the establishment of private investment banks in El Salvador represents a significant step towards expanding financial services for Bitcoin investors and promoting economic growth in the country.