El Salvador's National Assembly has approved a new law allowing major financial institutions to trade Bitcoin and other digital assets.
New Opportunities for Financial Institutions
According to the new law, financial institutions with a capital of at least $50 million will be able to gain 'investment bank' status and offer Bitcoin and crypto asset-based financial services to qualified investors.
Changes in El Salvador's Legislation
The new regulation allows investment banks to add Bitcoin service provider, digital asset service provider, or digital asset issuer licenses to their existing bank licenses. Deputy Dania González commented, 'The institutional structure of El Salvador’s financial system will be expanded with a new regulated and supervised structure, complementary to the traditional banking system.' The law was also supported by the Ministry of Economy.
Slow Cryptocurrency Adoption among the Public
El Salvador, which mandated businesses in the country to accept payments with Bitcoin in 2021, lifted this requirement in early 2025 to receive a $1.4 billion loan from the IMF, slowing down public sector Bitcoin initiatives. Moreover, low adoption rates have been noted, with crypto usage in remittance transactions at only 1% and just 20% of the public adopting crypto.
The new Bitcoin law in El Salvador aims to expand the role of financial institutions in the digital asset space, but challenges with cryptocurrency adoption among the public remain significant.
