El Salvador Launches Licensed Bitcoin Banks for Investors
El Salvador’s new Investment Banking Law authorizes PSAD-licensed crypto providers to operate as Bitcoin banks serving accredited investors. These Bitcoin banks must hold at least $50 million in capital, and clients need $250 000 in liquid assets. They can underwrite firms, issue bonds, offer loans and transact in local and foreign currencies, including digital assets. The law aims to attract institutional capital and reinforce El Salvador’s crypto finance hub status. Critics warn benefits may favor the state and large corporations. Traders should monitor the rollout of Bitcoin banking services and potential impacts on BTC demand.
Bullish
By enabling regulated Bitcoin banks with high capital and client thresholds, El Salvador’s law creates new institutional on-ramps for BTC. In the short term, traders may see increased market interest as large investors seek banking services tied to Bitcoin. Over the long term, a stable regulatory framework and the growth of a crypto finance hub could drive sustained demand for BTC, improving liquidity and price support. While benefits may skew to big players, broader institutional adoption tends to be bullish for Bitcoin’s market outlook.