As El Salvador commemorates the fourth anniversary of its transition towards bitcoin, officials have announced that the establishment of bitcoin banks is imminent. In August, the country passed the Investment Bank Law, paving the way for private investment banks focused on bitcoin.
El Salvador Prepares to Launch Bitcoin Banks Soon
El Salvador stands at the forefront of incorporating bitcoin into its financial framework and is set to transform its investment landscape with this cryptocurrency. During celebrations marking four years since bitcoin was recognized as legal tender, government representatives confirmed that these specialized banks would soon be operational.
Stacey Hebert, who heads El Salvador’s National Bitcoin Office (ONBTC), indicated that the launch of bitcoin banks is approaching. Hebert emphasized that this initiative aims to attract international investments and position El Salvador as a banking hub within Latin America.
When discussing a potential timeline for these institutions’ debut, Hebert stated:
We anticipate welcoming our first institutions by year-end. Throughout my three years at the Bitcoin Office, one recurring concern has been our existing banking system. We are on track to fundamentally reshape it.
The newly enacted Investment Bank Law facilitates this development by allowing these banks to function as platforms where sophisticated investors can utilize bitcoin and other cryptocurrencies in a regulated setting.
This new breed of bank will be capable of accepting deposits in both bitcoin and various cryptocurrencies while also offering crypto-backed loans, issuing investment tokens, and managing assets for cryptocurrency portfolios.
The National Commission of Digital Assets (CNAD) has outlined that this law aims “to broaden financial options available in the country, draw foreign investments, and establish El Salvador as a leading center for financial innovation in the region.”
Although these banks are not intended for everyday citizens in El Salvador to use directly, experts suggest their influence on national economic growth should not be overlooked; they could stimulate capital flow towards significant projects within the country.
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