The core goal of the El Salvador Bitcoin Bank proposal is to provide a diverse range of financing options for both U.S. dollar and Bitcoin investors to enhance the flexibility and attractiveness of the financial system, thereby promoting innovation and growth in the country's economy.
El Salvador aims to promote Bitcoin banking
El Salvador’s President Nayib Bukele, a staunch supporter of Bitcoin, has proposed establishing a private investment bank (BPI) in his country that would provide financial services to Bitcoin (BTC) and other U.S. dollar investors with fewer restrictions than traditional banks.
“As part of our economic plan for El Salvador, we propose the creation of a private investment bank in order to diversify financing options for potential investors in both dollars and bitcoin,” Milena Mayorga, El Salvador’s ambassador to the United States, said on Twitter on June 14.
Max Keiser, the president’s senior Bitcoin advisor, added the same day: “President Bukele is actively promoting new legislation to establish a Bitcoin bank during his new term.” He also mentioned that Ark Invest CEO Cathie Wood predicted that El Salvador’s real GDP could grow 10 times in the next five years, and the establishment of a Bitcoin bank would make this prediction more likely.
Just two weeks ago, Bukele was sworn in as president for a new five-year term after winning the election in a landslide in February.
Private investment banks will ease restrictions on financial innovation
According to El Mundo, the private investment bank (BPI) planned to be established in El Salvador will enjoy a more relaxed legal environment than traditional banks. The bank will not be subject to restrictions on cooperation with overseas banks, nor will it be subject to restrictions on cooperation with financial companies that are linked to shareholders or business groups. In addition, the loan restrictions faced by traditional banks will also be lifted in BPI.
The June 14 report further clarified that BPI will not be subject to legal constraints on excessive lending to a single customer, that is, it will not be restricted from "providing credit or assuming risk for more than 25% of the asset fund to the same person." This relaxation of the policy provides BPI with greater financial flexibility.
According to the proposal, if BPI is approved, it must have a registered capital of at least US$50 million and at least two shareholders, who can even be foreign investors. At the same time, the proposal emphasizes that BPI will be allowed to operate using any legal currency, including the US dollar and Bitcoin, and may be approved as a provider of digital assets and Bitcoin services. $BTC
The reform has reportedly been presented by El Salvador's Economy Minister, Maria Luisa Hayem, to the Technology, Tourism and Investments Committee, headed by President Nayib Bukele. However, the reform has yet to be approved. However, reports highlight that lawmakers have not yet agreed to convene officials to discuss the project's objectives, nor have they submitted it to the committee for a vote. #萨尔瓦多 #比特币银行 #金融创新
Although the BPI proposal reflects El Salvador’s innovative attempts in the financial sector and its open attitude towards digital assets such as Bitcoin, the final implementation of this proposal still needs to be reviewed and approved by the El Salvador legislature.
Conclusion
Salvadoran President Bukele's positive attitude towards Bitcoin and promotion of Bitcoin bank proposals shows the country's openness and forward-looking approach to financial innovation.
Although the private investment bank proposal still needs to go through legislative approval, its potential financial services capabilities and inclusiveness of Bitcoin provide new perspectives and opportunities for global investors.
As El Salvador continues to explore the field of Bitcoin, its economic development prospects and stance on cryptocurrencies deserve the world's attention.
