Cryptocurrencies

Pro-bitcoin Salvadoran President Nayib Bukele proposes creation of private investment banks

Pro-Bitcoin Salvadoran President Nayib Bukele proposes the creation of private investment banks in the country which, if approved, would provide Bitcoin (BTC) investors with access to financial services and fewer restrictions compared to traditional banks .

“As part of our economic plan for El Salvador, we propose the creation of a private investment bank, where we can diversify the financing options available to potential investors in dollars and bitcoin,” wrote the ambassador of the Salvador in the United States, Melina Mayorga. in a letter. Post dated June 14 on X.

“President Bukele is starting work on a new mandate with new legislation to create a Bitcoin bank,” Max Keyser, Bukele’s senior Bitcoin advisor, added the same day, referring to projections from Cathie Wood, CEO of Ark Invest, according to which El Salvador “real GDP”. It can reach 10″. – fold over the next five years” has become “more likely”.

Nayib Bukele was recently sworn in for a second five-year presidential term. Source: Presidential House

This comes just two weeks after Bukele was sworn in for another five-year presidential term following his landslide election victory in February.

Private investment banking will not have the same “prohibitions” in banking laws

According to El Mundo, BBI will not face the same strict laws as traditional banks, such as restrictions on transactions with offshore banks or financial companies “linked to their shareholders or a group of companies.” Restrictions on loans will also be removed.

“Investment banks will also not be subject to the ban on granting credits or assuming risks for more than 25% of their fund of assets with regard to the same person,” indicates the report of June 14.

If approved, new private investments “must be established” with capital of at least $50 million and require at least two shareholders, who can be foreign.

about: El Salvador launches website to monitor $360 million Bitcoin hoard

It was reiterated that BPI will be able to operate in any fiat tender, including USD and Bitcoin, and even gain approval to become digital asset service providers and Bitcoin.

El Salvador’s Economy Minister María Luisa Haim proposed the reform to the Technology, Tourism and Investment Commission under Bukele’s supervision. However, it has not yet been approved.

“The reform was not approved. She added that lawmakers have not yet agreed to invite officials to consult on the project’s objectives and have not put it to a vote by the body.

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