El Salvador Aims to Create Bitcoin-Focused Banks for Wealthy Investors
El Salvador's government is pushing for the establishment of 'Bank for Private Investments' (BPIs) this year, catering to experienced investors with significant liquid assets. These banks will operate with fewer restrictions, dealing in USD, Bitcoin, and stablecoins, and could transform the country into a Bitcoin-focused financial hub.
The BPIs target advanced investors with at least $250,000 in liquid assets or $500,000 in securities. They will offer financial services in both USD and Bitcoin, with fewer restrictions than traditional banks. The government aims to boost international trade through stablecoins and further establish Bitcoin as a unit of account.
BPIs will be exempt from certain laws, including credit restrictions and foreign banking regulations. They require a minimum capital of $50 million and at least two shareholders. Notably, these banks will be allowed to operate with Bitcoin and stablecoins. President Nayib Bukele's vision is to turn El Salvador into a financial hub for the wealthy, similar to Luxembourg or Monaco, with a focus on cryptocurrencies.
The draft law for BPIs has been sent to the National Assembly. Once approved, these banks can come into effect, offering experienced investors fewer restrictions and the opportunity to deal in Bitcoin and stablecoins. This move aligns with Bukele's ambition to make El Salvador a global leader in Bitcoin and cryptocurrency finance.
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