El Salvador has announced a new law allowing investment banks to operate with Bitcoin and other digital assets. This initiative aims to attract investment and develop crypto infrastructure in the country.
New Investment Banking Law
El Salvador has approved a new law regulating investment banks, allowing them to hold Bitcoin and other digital assets on their balance sheets. Juan Carlos Reyes, president of the Commission of Digital Assets in El Salvador, noted that the law enables private investment banks to operate in legal tender and foreign currencies for 'sophisticated investors.' As Reyes stated: "The new Investment Banking Law allows private investment banks to work with digital assets including Bitcoin under a Digital Asset Service Provider (PSAD) license."
International Partnerships for Crypto Growth
President of El Salvador, Nayib Bukele, met with Pakistan's state minister of crypto and blockchain, Bilal Bin Saqib, to share strategies for nation-level Bitcoin adoption and discuss energy policy to foster crypto mining. Bin Saqib noted: "The cooperation is essentially focused on how emerging economies under the IMF program can leverage technology and other financial instruments for national growth."
Criticism and Future of Crypto Investments
Despite efforts to promote cryptocurrencies, there are critical voices suggesting that BTC adoption in the country does not benefit the average citizen but primarily serves governmental and large business interests. El Salvador may soon consider further collaboration with other countries to improve the financial landscape and crypto investment climate.
The new investment banking law in El Salvador and international partnerships may represent significant steps toward building a sustainable crypto infrastructure. However, it is essential to address emerging criticisms to ensure benefits for all segments of the population.
