El Salvador President Nayib Bukele, who is a known bitcoin advocate, is proposing for the creation of ‘Bank of Private Investment’ to cater to Bitcoin (BTC) and other foreign investors. The banking prospect, if approved, will offer greater financial services and fewer restrictions to crypto and dollar investors.
On June 14, Salvadoran Ambassador to the United States, Milena Mayorga, announced the proposal on X, highlighting the plan to establish the Bank for Private Investment (BPI). The BPI aims to provide diverse financing options in both Dollars and Bitcoin.
Max Keiser, a senior Bitcoin advisor to Bukele, also shared his support, mentioning Ark Invest CEO Cathie Wood’s prediction that El Salvador’s GDP could increase tenfold in the next five years. This announcement follows Bukele’s recent inauguration for another five-year term after his landslide victory in February.
According to El Mundo, the proposed BPI will not face the same strict regulations as traditional banks. These include fewer restrictions on engaging with overseas banks or finance companies linked to shareholders. Loan restrictions will also be eliminated, allowing more flexibility in granting credit and assuming risks.
To establish a BPI, a minimum share capital of $50 million and at least two shareholders are required, who can be foreigners. The new banks can operate in any legal tender, including the U.S. Dollar and Bitcoin, and can seek approval to become digital asset and Bitcoin service providers.
El Salvador’s Minister of Economy, MarÃa Luisa Hayem, presented the reform to the Technology, Tourism, and Investment Commission under Bukele’s direction. However, it has not yet been approved. The legislators have not called officials to consult on the project’s objectives nor put it to a vote in the Commission.
If approved, these private investment banks could significantly boost El Salvador’s economy and further solidify its position as a Bitcoin-friendly nation.
Also Read: Argentina, El Salvador Explore Bitcoin Regulations
