Another new move? El Salvador President Nayib Bukele proposes setting up Bitcoin private bank

When El Salvador President Nayib Bukele was sworn in for his second term at the beginning of the month, he stated that he would provide "better prescriptions" to improve the domestic economy. Now it is only two weeks later. , he proposed to establish a “private investment bank” in the country, aiming to provide Bitcoin investors with less restrictive and more diversified financial services than traditional banks.

Milena Mayorga, the ambassador of El Salvador to the United States, posted on the social platform X: "As part of El Salvador's economic plan, we propose to establish a Bank for Private Investment (BPI). It can provide potential investors with diversified U.S. dollar and Bitcoin investment options.”

Nayib Bukele’s Bitcoin advisor Max Keiser added: “President Nayib Bukele has quickly promoted legislation to establish Bitcoin during his new term. Bank."

According to the "El Mundo" report, this private investment bank will not face the same strict legal restrictions as traditional banks, such as restrictions on transactions with overseas banks and financial companies related to shareholders or business groups. And loan restrictions will also be lifted. The report pointed out that investment banks are also not subject to the restriction that "prohibits providing the same person with credit exceeding 25% of the size of his or her capital assets or assuming corresponding risks."

If the proposal is approved, the newly established private investment bank "must have a minimum capital of at least US$50 million and require at least two shareholders, who can be foreigners."

The report reiterated that private investment banks can operate using any legal currency, including U.S. dollars and Bitcoin, and can even apply to become digital asset and Bitcoin service providers.

Salvadoran Economy Minister María Luisa Hayem, under the guidance of Nayib Bukele, proposed this reform to the Science, Technology, Tourism and Investment Committee, although the proposal has not yet been approved: This reform has not yet been adopted; lawmakers have not yet agreed to convene officials The project goals were consulted and not voted on in the committee.

Even so, the proposal has caused heated discussions in the cryptocurrency community, with many believing that it is a bold and forward-looking move that could have far-reaching consequences. If implemented successfully, the private investment bank could serve as a model, encouraging other countries to embrace digital currencies and capitalize on their potential for economic growth and financial inclusion.

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