El Salvador's pro-Bitcoin president, Nayib Bukele, is proposing the creation of private investment banks in the country. If approved, these banks would offer Bitcoin (BTC) investors financial services with fewer restrictions than traditional banks.
"As part of our economic plan for El Salvador, we propose a Bank for Private Investment (BPI) to diversify financing options for potential investors in both Dollars and Bitcoin," wrote Salvadoran Ambassador to the United States, Milena Mayorga, in a June 14 post on X.
"President Bukele is starting his new term strong with new legislation to establish a Bitcoin Bank," added Max Keiser, Bukele's senior Bitcoin advisor, on the same day. He also mentioned that Ark Invest CEO Cathie Wood’s prediction that El Salvador’s real GDP "could increase tenfold in the next five years" is becoming more likely.
This proposal comes just two weeks after Bukele started another five-year term following a landslide victory in February.
According to El Mundo, the BPI will not face the same strict regulations as traditional banks, such as restrictions on working with overseas banks or finance companies linked to their shareholders or business groups. Loan restrictions will also be removed.
"Investment banks will not be subject to the rule against granting credit or taking on risks for more than 25% of their Asset Fund with the same person," stated the June 14 report.
If approved, new private investments must have a minimum share capital of $50 million and require at least two shareholders, who can be foreigners.
Additionally, a BPI could operate in any legal tender, including the US Dollar and Bitcoin, and even seek approval to become digital asset and Bitcoin service providers.
El Salvador’s Minister of Economy, María Luisa Hayem, proposed the reform to the Technology, Tourism, and Investment Commission under Bukele's direction. However, it has not yet been approved.
"The reform has not been approved; legislators have not yet agreed to consult officials about the project’s objectives or put it to a vote in the Commission," the report added.
