El Salvador’s pro-Bitcoin President Najib Bukele has proposed establishing a private investment bank in the country that, if approved, would give Bitcoin (BTC) investors access to financial services with fewer regulations compared to traditional banks.
“As part of El Salvador’s economic plan, we propose a BPI (Private Investment Bank), which will allow us to diversify the financing options offered to potential investors in dollars and Bitcoin,” said Milena Mayorga, El Salvador’s ambassador to the United States. I have written In a post by X on June 14th.
“President Bukele is making steady progress in his new term with a new law establishing a Bitcoin bank,” said Max Keiser, a senior Bitcoin adviser to Bukele. Added On the same day, Ark Invest CEO Cathie Wood noted that the prediction that El Salvador’s real GDP “could expand tenfold over the next five years” was “now more realistic.”
This comes just two weeks after Bukele was sworn in for a new five-year presidential term after winning a landslide victory in February elections.
Private investment banks do not have all the same “prohibitions” under the Banking Act.
El Mundo reported that BPI will not face the same stringent laws as traditional banks, such as restrictions on doing business with foreign banks and financial companies with ties to shareholders or corporate groups. Lending restrictions will also be lifted.
“Investment banks are also not subject to the prohibition on extending credit or assuming risk in excess of 25% of an asset fund in relation to the same person,” the June 14 report said. stated.
If approved, new private investments would have to be “created” with a minimum equity capital of $50 million and would need to have at least two shareholders, including foreigners.
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It was reiterated that BPI can operate in any fiat currency, including US dollars and Bitcoin, and can also seek approval to become a digital asset or Bitcoin service provider.
El Salvador’s Economy Minister Maria Luisa Hayem has proposed the reforms to the Technology, Tourism and Investments Commission, which is under President Bukele’s direction, but they have not yet been approved.
“The reforms have not been approved. Legislators have not yet agreed to call officials to discuss the project’s objectives, nor has it been put to a vote in committee,” he added.
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