Buglei wants to set up a “Bitcoin bank”
El Salvador, a country located in the northern part of Central America, gave people the impression in the past that apart from the magnificent volcanic landscape, it was probably extremely poor security and backward development. Gangs in El Salvador have continued to be rampant in the country for the past 30 years, not only running rampant and ignoring the law. , and even wantonly robbed and killed, taking the lives of up to 120,000 civilians.
However, all this has become a thing of the past after the current President Nayib Armando Bukele Ortez came to power in 2019. Bukele not only implemented a tough national emergency to crack down on crime and minimize the crime rate, but also abandoned the government in 2021. made a decision that shocked the world - to use Bitcoin ($BTC) as legal tender.
Bugle's Bitcoin policy during his tenure has boosted the national economy, but he obviously does not intend to stop there. He proposed the policy of "closing the central bank" some time ago in an attempt to reorganize the domestic monetary order. Last week on Thursday (13th) ), he boldly proposed a new bill to reform the current banking law and planned to establish a "Bitcoin Bank".
Bitcoin Banking Bill Reform: 14 New Clauses
The new bill includes 14 new articles, the most important of which defines Private Investment Banks (PIBs) as "an important international instrument for promoting economic development and facilitating the channeling of financial resources to business and government projects."
In line with Bugle's Bitcoin policy, the new bill, if passed, will allow the emergence of "Bitcoin banks" in El Salvador, emphasizing support for instruments based on stable coins, US dollars, and Bitcoin, and providing a variety of financial services, covering economic risk management , financial product purchase, investment management, hedging and other financial derivatives.
The threshold is strict
However, the requirements for establishing a Bitcoin bank are very strict at this stage. The hard condition is that the bank should have a capital of US$50 million when it is established.
Secondly, the service targets of Bitcoin Bank are not for the general public, but for financial institutions or professional investors. They must first prove that they have assets of at least 250,000 to 500,000 US dollars, and then pass the bank expertise test before they can become a Bitcoin banker. Bank users.
This series of measures taken by the Bugle government not only hopes to capitalize on the appreciation potential of Bitcoin, but also aims to establish El Salvador as a pioneer in global cryptocurrency and financial technology. By creating a Bitcoin bank, El Salvador hopes to attract more international investment, enhance the country’s financial competitiveness, and inject new momentum into the local economy.
Support from the female stock god
Cathie Wood, the founder of Ark Investments, known as the "Female Stock God", expressed her appreciation for this. She believes that Bugle's tax incentives and support for new technologies such as Bitcoin and artificial intelligence (AI) A positive attitude is expected to promote economic growth in El Salvador.
She predicts that El Salvador’s economy will grow tenfold in the next five years. In addition, Bugele has also adopted courses from ARK Educate, a subsidiary of Ark, including robotics, energy storage, artificial intelligence, blockchain and multi-omics technology, and Applying these to schools in El Salvador, such a bold pursuit of innovation can lay a good foundation for the country's science and technology education.
