El Salvador’s Bitcoin bank could revolutionize its finances and attract investors | CryptoTvplus

El Salvador plans to launch a Bitcoin bank offering Bitcoin-backed loans, savings accounts and investment options. This follows the country’s historic decision to adopt Bitcoin as legal tender in 2021.

“As part of our economic plan for El Salvador, we are proposing a BPI, Private Investment Bank, where we will be able to diversify the financing options offered to potential investors in dollars and #Bitcoin”, said El Salvador’s ambassador to the United States, Milena Mayorga, on her X account (formerly Twitter).

According to a report According to the ambassador, the Technology, Tourism and Investment Committee of the Legislative Assembly has already examined the draft reform of the banking law. This reform aims to promote economic growth, strengthen the strength of the financial system and increase the competitiveness of El Salvador.

The President of the Commission, represented by Dania González, accepted the draft reform of the Banking Law, which will guide the new banking system. María Luisa Hayem, Minister of Economy of El Salvador, did not comment on the initiative during the presentation.

The draft new banking law stipulates that any new private investment bank must be established with a registered capital of at least $50 million. In addition, these banks must have at least two shareholders, who can be nationals or foreign entities.

The announcement has attracted the attention of cryptocurrency enthusiasts, who see it as an important step toward widespread acceptance of digital currencies. One user out of X, RichQuack, REMARK“It’s one of the ways to drive [the] adoption of cryptography. Exciting times for Bitcoin and investors in El Salva.

Another user job by the Ambassador of El Salvador to the United States, said this decision would be a game changer for the South American country. “They already have a 100% clean geothermal $BTC miner. NOW, [this is] a glimpse into the future where entire economies will diversify financing options for potential investors in dollars and $BTC,” he added.

El Salvador has been at the forefront of cryptocurrency adoption, particularly with Bitcoin. It was the first country to adopt Bitcoin as legal tender and has accumulated a significant reserve, mining over 5,000 BTC since 2021. The country also buys one Bitcoin per day, increasing its holdings to over 5,750 BTC.

Additionally, El Salvador uses geothermal energy from its volcanoes to power its electrical operations. This unique approach has allowed the country to mine more Bitcoin. This too inaugurated the National Commission for Digital Assets (CNAD) to create guidelines for its digital asset economy.

While advancing its Bitcoin initiatives, the IMF has strongly condemned the country’s policy, arguing that making Bitcoin legal tender entails significant macroeconomic, financial, and legal challenges that require careful consideration.

Despite this, Nayib Bukele, re-elected for a second term and pursuing his vision of transforming his South American country, has seen growing citizen support for the decision. Last year, he assured investors that an agreement with the IMF could be considered after the elections.

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