Bitcoin Investment Banks Set to Launch in El Salvador Says Goverment Official
A government official has confirmed that Bitcoin investment banks will launch in El Salvador, highlighting the nation’s crypto adoption.
The government crypto regulator agency, CNAD, has approved a new investment banking law that will allow banks to hold Bitcoin.
El Salvador Approves Bitcoin Investment Banks
El Salvador has passed a new investment banking law that distinguishes investment banks from commercial banks and allows banks to hold Bitcoin and other digital assets in their balance sheet.
According to Juan Carlos Reyes, the president of the El Salvador Commission of Digital Assets (CNAD), the new law will allow private investment banks to operate in both legal tender and foreign currencies for complex investors. Additionally, he noted that with a Digital Asset Service Provider (PSAD) licence, a bank can operate entirely as a Bitcoin Bank.
While critics claim that the regulatory policy will only benefit the government and large firms since institutional investors are the major drivers of crypto adoption, the new law supporters believe that the move will attract foreign investment and position El Salvador as a global financial hub.
El Salvador Joins Pakistan and Bolivia to Boost Bitcoin Adoption
In support of crypto mining, Nayib Bukele, the president of El Salvador, met with Bila Bin Saqib, Pakistani minister for crypto and blockchain, to discuss strategies for national-level Bitcoin integration and energy policies.
According to Bin Saqib, the cooperation focuses on assisting emerging economies under the IMF program to leverage technology and other financial tools for national growth.
Furthermore, Bolivia’s central bank signed a memorandum of understanding with El Salvador’s Commission of Digital Assets(CNAD) on July 30 to support the use of cryptocurrencies as an alternative to traditional fiat.
The signing comes amid a U.S. dollar shortage in Bolivia, which has made international trade difficult and driven increased adoption of the U.S.-dollar-dominated stablecoins as a medium of exchange.
Meanwhile Bitcoin price has gone up 2% trading at $118,598, on a 7% surge in the daily trading volume to $59 billion. The market capitalization now stands at $2,36 trillion
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