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17/06/24
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El Salvador Administration Proposes a Bank for Private Investment That Could Offer Bitcoin
El Salvador’s president, Nayib Bukele, wants the administration to establish private investment banks across the country. One of the potential functions of the bank following approval is to provide BTC investors access to financial services and reduce restrictions relative to traditional banks.
According to the country’s Ambassador to the United States Milena Mayorga via X three days ago, the government has proposed a Bank for Private Investment (BPI):
“As part of our economic plan for El Salvador, we propose a BPI, Bank for Private Investment, where we can diversify the financing options offered to potential investors in Dollars and Bitcoin”.
President Bukele’s Bitcoin advisor Max Keiser said “President Bukele hits the ground running in new term with new legislation establishing a Bitcoin Bank,” highlighting the prediction of Ark Invest CEO Cathie Wood that the real GDP of El Salvador “could scale 10-fold during the next five years” and that it is now “more likely.”
This comes just two weeks following the swearing in of Bukele as president for another term. El Mundo noted that BPI will not be subject to similar stringent laws as traditional banks, like restrictions on engaging with overseas banks or finance firms “linked to their shareholders or in a business group.” Likewise, there will be no loan restrictions.
“Investment banks will also not be subject to the prohibition of “granting credit or assuming risks for more than 25% of their Asset Fund in relation to the same person,” reads El Mundo’s report three days ago.
Approval of a BPI means new private investments are to be created with a least $50 million share capital. BPI can operate in any legal tender such as USD or Bitcoin, and work towards approval to become a digital asset service provider.
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