El Salvadoran President Nayib Bukele is making moves to establish ‘Banks for Private Investment’ (BPI) that will cater to Bitcoin and Dollar investors with fewer restrictions. This initiative is part of Bukele’s efforts to promote Bitcoin adoption in the country, following the decision to make BTC legal tender in 2021, making El Salvador the first nation to do so.
The proposed BPIs will offer a range of financial services to clients, allowing them to access various asset types and products using assets like Bitcoin, other cryptocurrencies, and the US Dollar. Milena Maryoga, the Salvadoran Ambassador to the US, highlighted the economic plan for El Salvador, emphasizing the need for BPIs to diversify financing options for potential investors in both Dollars and Bitcoin.
Unlike traditional banks, BPIs will operate with more flexibility and less stringent regulations. For example, they will have the freedom to set up with a minimum of two board members, who can be either Salvadoran or foreigners. Additionally, BPIs will not be subject to the same restrictions when it comes to interacting with other banks and financial institutions related to their shareholders.
Reports suggest that BPIs will also have the option to function as virtual asset service providers, such as crypto exchanges and custodians, once they receive approval from relevant authorities. Moreover, these banks will not be limited to dealing only with US Dollars or bitcoins but can choose to accept any global currencies, providing clients with more options.
While the proposal is still pending approval from the Technology, Tourism, and Investment Commission, there is a possibility that it could materialize in the near future. Further clarification from the agency is awaited to shed light on the potential implementation of BPIs in El Salvador’s financial landscape. This innovative approach to banking could open up new opportunities for investors and contribute to the country’s economic growth and development.