El Salvador Stresses Bitcoin Banks Are Coming This Year
During celebrations marking the fourth year of the country’s bitcoin pivot, authorities said bitcoin banks will be established soon. El Salvador enacted the Investment Bank Law in August, opening the doors to private bitcoin investment banks.
El Salvador Readies to Open Bitcoin Banks Soon
El Salvador, one of the pioneering countries in integrating bitcoin as part of its financial system, is on the verge of revolutionizing its investment ecosystem with bitcoin. While celebrating the fourth year of the approval of the Bitcoin law, which established bitcoin as legal tender, authorities assured that bitcoin banks would appear soon.
Stacey Hebert, Director of the National Bitcoin Office (ONBTC) of El Salvador, noted that bitcoin banks were near. Hebert assessed that the move would be relevant to attract foreign capital and advance a banking hub in Latin America.
Commenting on a possible timeline for the arrival of these banks, Hebert declared:
We expect the first ones to arrive by the end of the year. In my three years at the Bitcoin Office, this had been one of the main complaints we received, the current banking system. So, we are about to completely transform the banking system.
The Investment Bank Law, which opened the doors for this kind of bank to appear, allows bitcoin banks to serve as a tool for sophisticated investors to leverage bitcoin and other crypto assets in a regulated environment.
These banks can receive deposits in bitcoin and other cryptocurrencies, offer crypto-backed loans, issue investment tokens, and provide asset management services for cryptocurrency-based portfolios.
According to the National Commission of Digital Assets (CNAD), the law’s objective is “to diversify the country’s financial options, attract foreign capital, and consolidate El Salvador as a regional hub for financial innovation.”
While these banks are not designed to be leveraged by common Salvadoran citizens, analysts explain that their effect on the country’s economy should not be underestimated, as they might catalyze capital to develop relevant projects in the nation.
Read more: Salvadoran Government Introduces Bitcoin Banking Law Reform
Tags in this story
Bank, Bitcoin (BTC), El Salvador, Latin America LATAM
Read more: New Investment Bank Law in El Salvador Opens Doors to Bitcoin Products
Sergio Goschenko
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