by El Salvador plans to create Bitcoin banks
The Izalco, a volcano in El Salvador. Image by Angela Rucker via Wikipedia, license: public domain
The Bukele government presented a draft for a new banking form. This should work with fewer restrictions with dollars, stable coins and bitcoins. It should play the strategy of El Salvador’s President Nayib Bukele to make the small Central American country a financial center thanks to cryptocurrencies.
The government in El Salvador proposes the creation of a new banking form with a draft law: the “Bank for Private Investments (BPI)”. Such a bank should be able to offer financial services in both US dollars and in Bitcoin with fewer restrictions compared to traditional banks.
The BPI are excluded from some laws, for example with regard to the restrictions of loans and foreign banking relationships. They require a minimum capital of $ 50 million and at least two shareholders. It is possible for you to operate with bitcoin and stable coins.
The target group of this new banking form does not include the average residents of the poor Central American country. Because only “experienced” or. “Advanced” investors are allowed as customers, which means that they, whether as a private individual or company, are at least over 250.000 dollars of liquids or 500.$,000 have to have in securities. You will receive access to financial services with fewer restrictions and hurdles.
The draft law was forwarded by the government of President Nayib Bukele to the National Assembly. As soon as this has agreed, it can enter into force.
The “Bank for Private Investments” is another building block of Bukele’s ambitions to convert the small, rather poor and agricultural land. Instead of the home of the gangs and drug barons, El Salvador is said to become a glittering home of the rich, a magnet for the capital of this world, not much differently than small Asian and Central American tiger states and tax havens, or even countries such as Luxembourg, Liechtenstein and Monaco. With the focus on Bitcoin and crypto drives, Bukele is based on an industry whose potential has not yet been explored by other countries and El Salvador gives the opportunity to take the lead.
By could do business in cryptocurrencies, especially for advanced investors with few restrictions, Bukele Bitcoin and StableCoins introduce as a means of payment in the official financial system. This is great potential: Stable coins can inspire international trade, Bitcoin can continue to prevail as an unit of invoice – also for loans and loans – the general infrastructure can interlink finance and crypto, and such a model could be attractive for investors and founders from abroad.
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.