El Salvador President Nayib Bukele has proposed the creation of a private investment bank aimed at providing financial services to Bitcoin (BTC) investors.
This move aims to ease restrictions imposed by traditional banks.
The proposed bank will enable investors to trade in both US dollars and Bitcoin, potentially becoming a service provider for digital assets and Bitcoin.
“As part of our economic plan for El Salvador, we are proposing a BPI, a Private Investment Bank, through which we can diversify the financing options available to potential investors in Dollars and Bitcoin,” said El Salvador's Ambassador to the United States, Milena Mayorga.
The reform bill defines expert investors as people who have investment experience, can assess risks and have freely available assets equivalent to $250,000 or $500,000.
Private investment banks will be able to trade in any fiat currency, including dollars and Bitcoin. They may also seek authorization to become digital asset service providers and Bitcoin service providers.
According to the reform project, private investment banks will not be subject to all prohibitions set out in the Banking Law. For example, it will not be subject to the ban on “providing loans or assuming risks to the same person for more than 25% of the Wealth Fund” regulated in Article 197 of the current law. The project also states that the ban on lending more than 10% of bank assets to people abroad, regulated in Article 197, will not apply to loans given by private investment banks.
*This is not investment advice.
