El Salvador has once again stirred the crypto world. In a post on X, the country announced today that "Bitcoin Banks are coming to Bitcoin Country"—a bold continuation of President Nayib Bukele's digital economic vision. Although the plan remains vague for now, it's a clear signal of the nation’s intent to further integrate Bitcoin into its financial system.
Bitcoin-Only Banks Could Reshape Salvador’s Economy
As the first country to adopt Bitcoin as legal tender, El Salvador continues to break ground. The new plan echoes a previous proposal by President Bukele from 2023 to establish Banks for Private Investment (BPIs). These institutions would serve as a modern alternative to traditional banks, with fewer regulations and more flexibility in lending and international partnerships.
According to El Salvador’s Ambassador to the U.S., Milena Mayorga, BPIs could operate as digital asset managers and would require a minimum share capital of $50 million. The new Bitcoin banks may follow this structure or possibly expand upon it.
Unlocking Financial Access and Driving Growth
Bitcoin-only banks could dramatically increase financial access in El Salvador, where nearly 70% of the population is unbanked. These institutions might finally bridge that gap.
Max Keiser, President Bukele’s senior Bitcoin advisor, believes that integrating BTC into banking could significantly boost the country's GDP. Similarly, Cathie Wood, CEO of ARK Invest, forecasted strong economic growth in the next five years if the BPI model is adopted.
IMF Warnings and Questions Over Government Transparency
While the crypto community largely welcomes the move, the International Monetary Fund (IMF) has again raised concerns. The IMF cited crypto’s volatility and lack of consumer protections as major risks to financial stability. Additionally, the IMF challenged El Salvador's claim that recent BTC wallet activity reflected new purchases—saying it was merely consolidation of existing holdings. This casts doubt on the government's transparency in managing its Bitcoin strategy.
El Salvador Doubles Down on Bitcoin
Since making Bitcoin legal tender in 2021, El Salvador has:
🔹 Launched the state-backed Chivo wallet
🔹 Invested in BTC reserves and bonds
🔹 Introduced geothermal-powered Bitcoin mining
🔹 Begun constructing Bitcoin City
Now, it appears ready to bring Bitcoin into banking.
Although it’s still unclear whether the government will adopt the BPI framework or introduce a new model, one thing is certain: El Salvador isn’t backing down from its crypto-first agenda—and the world is watching.
El Salvador’s Current Bitcoin Position
🔹 Government BTC holdings peaked at $767 million
🔹 Bitcoin hit an all-time high of $123,000 in July
🔹 Under its $1.4 billion IMF loan, El Salvador is officially barred from buying more BTC
#BTC , #ElSalvador , #NayibBukele , #CryptoAdoption , #DigitalAssets
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