El Salvador: Bukele Launches Pro-Bitcoin Bank Project

By Cointribune EN
about 1 month ago

The audacity of the President of El Salvador, Nayib Bukele, as well as his unwavering loyalty to Bitcoin, is once again demonstrated with a bold proposal: the creation of a private investment bank dedicated to Bitcoin. Two weeks after being sworn in for his second term, Bukele continues to make waves in the financial and political world by considering more extensive financial services for Bitcoin investors.

A Bitcoin Bank to Revolutionize Investment

The Salvadoran President, Nayib Bukele, known for his fervent support of Bitcoin, recently unveiled a proposal to establish a private investment bank in El Salvador at the beginning of his second term.

This bank, if it comes to fruition, could offer Bitcoin investors financial services without the restrictions imposed by traditional banks.

“ As part of our economic plan for El Salvador, we propose a PBI, a private investment bank, where we can diversify the financing options offered to potential investors in dollars and bitcoins ”, wrote the Salvadoran ambassador to the United States, Milena Mayorga, on X.

Max Keiser, Bukele’s senior advisor on Bitcoin, added that this initiative aligns with the predictions of Cathie Wood, CEO of Ark Invest, according to which El Salvador’s real GDP could multiply tenfold over the next five years.

Keiser stated:

“ President Bukele started his new term with new legislation establishing a Bitcoin bank ”.

This proposal marks a new step in the adoption of Bitcoin in El Salvador, a country that already made headlines in 2021 by becoming the first to adopt Bitcoin as legal tender.

A More Flexible Regulatory Framework

According to a report by El Mundo, the new Bank for Private Investment will not be subject to the same stringent laws as traditional banks. Restrictions on relationships with foreign banks or financial companies linked to their shareholders will be lifted, as well as limitations on loans.

Investment banks will also not be subject to the prohibition on granting credits or assuming risks for more than 25% of their asset funds in relation to the same person”, states the report.

This reform, driven by the Minister of Economy, María Luisa Hayem, and supported by Bukele, still needs to clear several hurdles before being approved.

Legislators have yet to agree to summon officials to discuss the project’s goals or submit it to a vote within the Technology, Tourism, and Investment Commission.

If approved, the new bank will require a minimum social capital of $50 million and at least two shareholders, who can be foreign. This bank will be able to operate in any legal currency, including the US dollar and Bitcoin, and could also seek authorization to become a provider of digital asset and Bitcoin services.

Bukele’s proposal reflects his vision of a modern and technologically advanced El Salvador, where Bitcoin plays a central role in the country’s economic transformation.

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