El Salvador: New law to integrate Bitcoin into banks in the country

The Salvadoran government recently proposed a law to create private investment banks using bitcoin. This initiative comes just 2 weeks after the re-election of Nayib Bukele, consolidating his mandate for 5 years and strengthening the integration of Bitcoin into the country’s financial system.

Banks that use Bitcoin in El Salvador

Since El Salvador adopted Bitcoin as legal tender 3 years ago, the government’s first focus has been on creating the infrastructure and applications to give the local population access to the tools needed to use Bitcoin.

Then Nayib Bukele and his government introduced Bitcoin to schools where it is taught through initiatives such as Node Nation and the Cubo+ program. El Salvador has also worked to institutionalize BTC by trying to issue bonds in this new currency and creating special visas for Bitcoin investors and enthusiasts.

👉 Do you know Discover Bitcoin? This team of French speakers working with the government of El Salvador to teach Bitcoin in schools.

Last weekend, the Salvadoran government has proposed the creation of a private investment bank that would allow qualified holders of bitcoins to use them through various services similar to those of traditional finance.

According to the bill, the government considers private investment banks as a tool that “facilitates the efficient channeling of financial resources into business and government projects, which ultimately increases the wealth of the nation. »

On this occasion, Milena Mayorga, Ambassador of El Salvador to the United States, spoke on this topic in a publication on X.

“As part of our economic plan for El Salvador, we are proposing a BPI, a Private Investment Bank, where we can diversify the financing options available to potential investors in dollars and bitcoins. »

The bill would change a lot of things for these private equity banks:

  • Must have with a minimum share capital of $50 million and at least 2 local or foreign shareholders;
  • They will be authorized to do so raise funds only from sophisticated investors ;
  • They will be able to they operate in dollars and bitcoins and also serve as digital asset service providers;
  • They will have authorization to conclude contracts with foreign financial institutions connected to their shareholders ;
  • They it will not be necessary to have at least 51% Central American investors.

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This bill, proposed by the Bukele government, comes only 2 weeks after the outgoing president was re-elected with 85% of the vote. Nayib Bukele is therefore the head of the Salvadoran state for the next 5 years.

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Source: bill

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