El Salvador has unveiled plans to establish specialized Bitcoin banks designed for private investors, where the cryptocurrency will serve as the core asset for deposits, loans, and investment operations, according to a report by Bitcoin Magazine on X.
The initiative expands on the Central American nation’s historic 2021 decision to adopt Bitcoin as legal tender, a move that positioned El Salvador at the forefront of global digital currency adoption. Officials say the proposed Bitcoin banking sector aims to attract international investors, boost capital inflows, and accelerate economic growth through the broader integration of digital assets into the financial system.
Under the proposal, participating institutions will face minimal capital requirements, a measure intended to encourage swift entry into the market and stimulate competition.
While the plan has generated enthusiasm among Bitcoin advocates, it has also drawn scrutiny from international bodies. The International Monetary Fund (IMF) has repeatedly warned about potential fiscal and financial stability risks associated with large-scale cryptocurrency integration, urging caution in balancing innovation with safeguards.
The Salvadoran government, however, remains committed to moving forward. Supporters argue that the creation of Bitcoin-centric banks could solidify the country’s role as a global hub for blockchain innovation and alternative finance.
If implemented, the framework would mark another milestone in El Salvador’s effort to weave Bitcoin into its economic fabric—this time targeting private investment and institutional-scale financial services.
Credit: @BitcoinMagazine via X.
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