El Salvador’s President Nayib Bukele, a supporter of Bitcoin, is suggesting the establishment of private investment banks in the country. If approved, these banks would provide Bitcoin investors with access to financial services and fewer restrictions compared to traditional banks.
In a post on X on June 14, the Salvadoran Ambassador to the United States, Milena Mayorga, mentioned the proposal for a Bank for Private Investment (BPI) as part of the economic plan for El Salvador. This bank would offer diversified financing options in Dollars and Bitcoin to potential investors.
Senior Bitcoin advisor to Bukele, Max Keiser, also expressed support for the idea, noting that Cathie Wood, CEO of Ark Invest, predicted a significant increase in El Salvador’s real GDP over the next five years. This has made the establishment of a Bitcoin Bank more likely.
Nayib Bukele recently began his second five-year presidential term, following a landslide victory in February. The proposed Bank for Private Investment would not be subject to the same strict banking laws as traditional banks, allowing for more flexibility in operations and loan offerings.
The BPI would require a minimum share capital of $50 million and at least two shareholders, who could be foreigners. It could operate in any legal tender, including the US Dollar and Bitcoin, and could potentially become digital asset and Bitcoin service providers.
The Minister of Economy, María Luisa Hayem, presented the reform proposal to the Technology, Tourism, and Investment Commission under Bukele’s direction. However, the approval of this proposal is still pending as legislators have not yet agreed to discuss the objectives of the project or put it to a vote in the Commission.
In related news, it has been emphasized that ‘Bitcoin Layer 2s’ are not truly Layer 2s, and the implications of this are significant.