Important points:
- Nayib Bukele proposes establishing a private investment bank in El Salvador.
- It will offer financial services in dollars and bitcoin, with fewer restrictions.
- It requires a capital of at least $50 million and at least two shareholders.
Private investment bank “Finance options will be diversified.” Available to investors in dollars and bitcoin.
El Salvador's pro-bitcoin president, Nayib Bukele, proposes creating… Private investment banks Within the nation. If approved, these banks will offer Bitcoin investors (Bitcoin) Access to financial services and fewer restrictions compared to traditional banks.
“As part of our economic plan for El Salvador, we propose the creation of the private investment bank BIP, where we can diversify the financing options offered to potential investors in dollars and Bitcoin.”
Melina Mayorga, El Salvador's ambassador to the United States
“President Bukele begins his new term with new legislation establishing a Bitcoin bank.”Max Keizer, senior Bitcoin advisor at Bukele, added on the same day. He also pointed to a forecast by Cathie Wood, CEO of Ark Invest, that El Salvador's real GDP “It could multiply by 10 over the next five years.” had become “probably”.
This comes just two weeks after Bukele assumed office for a second five-year presidential term following his landslide victory in the February elections.
Benefits of private investment bank
A private investment bank will not have all the “prohibitions” in banking laws. According to El Mundo newspaper, BIP You won't face the same stringent regulations as traditional banks. For example, there will be no restrictions on dealing with foreign banks or financial companies. “Related to its shareholders or business group”. Lending restrictions will also be removed.
“Investment banks will also not be subject to a ban on granting credit or assuming risks for more than 25% of their financial assets in relation to the same person.”as stated in the June 14 report.
In the event of approval of new private investments “It must be created” with The minimum capital is $50 million and will require a minimum of two shareholderswho may be foreigners.
Operating a private investment bank
It has been reiterated that BIP can operate in any fiat tender, including USD and Bitcoin, and even get approved for it. To become a Bitcoin and digital asset service provider.
El Salvador's Economy Minister, María Luisa Haim, proposed the reform to the Technology, Tourism and Investment Commission under Bukele's supervision. However, it has not been approved yet.
“The reform was not approved. He added, “Legislators have not yet agreed to invite officials to consult on the project's objectives and have not put it to a vote in the commission.”
