El Salvador has announced plans to introduce Bitcoin-only banks, building on President Nayib Bukele’s ongoing Bitcoin strategy.
The National Bitcoin Office (ONBTC) of El Salvador, operating under President Nayib Bukele, announced on X that Bitcoin banks are coming to the “Bitcoin country.” The details aren’t clear yet, but the idea is to create banking institutions that work mainly with Bitcoin.
The initiative could immensely boost financial access in the country where close to 70% of the population is unbanked. This announcement is linked to Bukele’s earlier Bank for Private Investment (BPI) proposal, which would let banks operate with fewer rules, partner with foreign institutions more easily, and handle bigger loans. BPIs would need at least $50 million in capital and two shareholders, and could register as Bitcoin service providers.
Some supporters, like Max Keiser and Cathie Wood, believe Bitcoin banks could boost El Salvador’s economy. But the IMF has warned about risks like Bitcoin’s volatility and lack of consumer protection.
El Salvador has become a massive cryptocurrency adopter since legalizing Bitcoin in 2021. It has introduced the Chivo wallet, offered Bitcoin bonds, and designed a geothermal-powered mining venture.
With its Bitcoin reserves recently hitting a high of $747 million and BTC reaching an all-time high of $123,000 in July, El Salvador is doubling down on its digital asset dream. The country aims to become a world crypto hub.
Details on the bank’s exact framework are yet to be revealed, but the direction is clear. Bitcoin will be at the heart of El Salvador’s financial future.
Also Read: IMF Disputes El Salvador’s Bitcoin Claims, Calls Them Wallet Shuffles
