El Salvador Approves Investment Banking Law Enabling Bitcoin Bank Operations

El Salvador's new law permits licensed banks to hold Bitcoin and offer crypto services, aiming to boost foreign investment while critics warn it may favor institutional players.

BTC

Summary

Confirmed on August 10 by the Digital Asset Commission chairman, El Salvador's Investment Banking Law now allows licensed investment banks to hold Bitcoin and other digital assets, provide crypto services to qualified investors, and operate under a pure Bitcoin bank model. Critics argue the new policy may favor institutions over the general public.

Terms & Concepts
  • Digital Asset Service Provider (PSAD) License: A regulatory certification enabling banks to hold and manage digital assets and offer crypto-related services.
  • Investment Banking Law: Legislation in El Salvador that allows investment banks to hold digital assets and provide crypto services, redefining their operational framework.
  • Bitcoin: A decentralized digital currency that operates without central control, widely used for payment and investment.