๐๐๐ #bitcoin bank proposal gains momentum in #elsalvador
El Salvador Proposes Private Investment Banks to Boost Bitcoin Adoption
- El Salvador's President Nayib Bukele has proposed the creation of private investment banks to enhance Bitcoin (BTC) adoption by offering less restrictive financial services compared to traditional banks.
Key Proposal Points:
- Bank for Private Investment (BPI): Announced by Salvadoran Ambassador to the U.S., Milena Mayorga, BPIs would diversify financing options in Dollars and Bitcoin.
- Legislative Background: The proposal follows Bukeleโs recent re-election and aims to attract investors by reducing regulatory constraints on BPIs, unlike traditional banks.
- Regulatory Relief: BPIs would face fewer restrictions on overseas engagements and loan limits, allowing more flexibility in operations and risk management.
- Requirements: Establishing a BPI requires a minimum share capital of $50 million and at least two shareholders, who can be foreign. BPIs could operate in legal tenders like the U.S. Dollar and Bitcoin, and seek approval as digital asset service providers.
Legislative Process:
- The proposal, directed by Bukele and introduced by Minister of Economy Marรญa Luisa Hayem, is under review by the Technology, Tourism, and Investment Commission but has yet to be approved.
- El Salvadorโs initiative aligns with its broader strategy to integrate Bitcoin into its financial system, potentially attracting significant investment and fostering economic growth.
