El Salvador has enacted a law allowing investment banks to exclusively operate as Bitcoin banks for accredited investors. This move may attract international capital and reshape the financial landscape.
New Law on Bitcoin Banks
Under the new law passed in August 2025, investment banks in El Salvador are now authorized to operate fully as Bitcoin banks, catering to accredited investors. "The new Investment Banking Act allows private investment banks to provide services to 'sophisticated investors' in both fiat and foreign currencies," said Juan Carlos Reyes, Chairman of CNAD.
Impact on El Salvador's Financial Sector
The law aims to transform the financial landscape of the country and attract international institutional capital. It is expected that this regulatory shift will draw attention from high-net-worth investors. To operate as Bitcoin banks, institutions must meet a minimum capital requirement of $50 million.
International Cooperation and Future Prospects
El Salvador is also actively developing international collaborations, including agreements with Pakistan and Bolivia on Bitcoin policies. These initiatives support El Salvador's goal to become a crypto-friendly jurisdiction and facilitate international capital flows.
The new law in El Salvador regarding Bitcoin banking operations could significantly alter the local financial market, attracting international investments and fostering the development of new financial technologies.
