# El Salvador plans to establish Bitcoin banks

Source: https://bitcoinblog.de/2024/06/17/el-salvador-plant-schaffung-von-bitcoin-banken-2
Kiwi News: https://news.kiwistand.com/stories/El-Salvador-plans-to-establish-Bitcoin-banks?index=0x667140c6bbc4a2714fe79b802bbdc21c7dfcc2197886fcfb3992479fe2512db218342313
Submitted by rvolz.eth on 2024-06-18 UTC, 1 upvote, 2 comments

## Summary

El Salvador's Bukele government has presented a draft law for a new type of bank, the "Bank for Private Investments" (BPI), which would operate with fewer restrictions and offer services in US dollars and Bitcoin. The BPIs would be exempt from certain rules, such as those on credit restrictions and foreign banking relationships, and would require a minimum capital of 50 million dollars and at least two shareholders. Clients would be limited to "experienced" or "advanced" investors with at least 250,000 dollars in liquid assets or 500,000 dollars in securities. The draft has been forwarded to the National Assembly, and it can take effect once approved.

## Article

Der Izalco, ein Vulkan in El Salvador. Bild von Angela Rucker via wikipedia, Lizenz: Öffentliche Domäne

The Bukele government has presented a draft for a new type of bank. This bank is expected to operate with fewer restrictions using dollars, stablecoins, and bitcoins. It aligns with El Salvador’s President Nayib Bukele’s strategy to transform the small Central American country into a financial hub through cryptocurrencies.

The government of El Salvador proposes the creation of a new type of bank through a draft law: the „Bank for Private Investments (BPI).“ Such a bank is envisioned to offer financial services in both US dollars and Bitcoin with fewer restrictions compared to traditional banks.

The BPIs are exempted from certain laws, such as those concerning credit restrictions and foreign banking relationships. They require a minimum capital of 50 million dollars and at least two shareholders. They are also allowed to operate with Bitcoin and stablecoins.

The target audience for this new type of bank does not include the average residents of the poor Central American country. Only „experienced“ or „advanced“ investors are allowed as clients, meaning they must have at least 250,000 dollars in liquid assets or 500,000 dollars in securities, whether as individuals or businesses. In return, they gain access to financial services with fewer restrictions and hurdles.

The draft law has been forwarded by President Nayib Bukele’s government to the National Assembly. Once approved, it can come into effect.

The „Bank for Private Investments“ is another cornerstone of Bukele’s ambitions to transform the small, relatively poor, and agrarian country. Instead of being known for gangs and drug lords, El Salvador aims to become a glittering home for the wealthy, a magnet for the world’s capital, much like the small Asian and Central American tiger states and tax havens or countries like Luxembourg, Liechtenstein, and Monaco. With a focus on Bitcoin and cryptocurrencies, Bukele is betting on an industry whose potential is yet to be fully explored by other countries, giving El Salvador the opportunity to lead the charge.

By allowing banks specifically for advanced investors to conduct business with few restrictions, including dealing in cryptocurrencies, Bukele integrates Bitcoin and stablecoins into the official financial system. This holds significant potential: stablecoins can boost international trade, Bitcoin can further establish itself as a unit of account – even for loans and credits – the general infrastructure can intertwine finance and crypto more deeply, and such a model could attract investors and entrepreneurs from abroad.

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## Comments

**misha**: Banks + crypto ? I thought crypto was all about going bankless ;)


**rvolz.eth**: Bankless, the unwashed masses? I think, the recent popularity of Bitcoin et al amongst certain politicians points into a different direction

>>> Only „experienced“ or „advanced“ investors are allowed as clients