El Salvador Plans World’s First Bitcoin-Only Banks
What’s the News?
* 🔷El Salvador’s official Bitcoin Office announced plans to launch Bitcoin-only banks—potentially the first of their kind globally
* 🔷These banks would offer financial services entirely denominated in BTC, deepening Bitcoin’s integration into the national financial system
* 🔷The initiative builds on the 2024 proposal for a Bank for Private Investment (BPI) that would operate in both USD and BTC while offering flexibility in lending and international partnerships
❇️A LITTLE BACKGROUND STORY:
* 🔺El Salvador became the first country to make Bitcoin legal tender in 2021
* 🔺Post-IMF loan conditions in 2025, the government scaled back some Bitcoin mandates (e.g., making acceptance voluntary, limiting public-sector involvement) while continuing BTC purchases
* 🔺Despite setbacks, El Salvador continues to buy and hold Bitcoin, maintaining its strategic interest in the asset
❇️Why It Matters
* 🔸A Bitcoin bank could significantly improve financial inclusion in a country where nearly 70% of citizens are unbanked
* 🔸This positions El Salvador as a global hub for crypto finance, potentially attracting institutional capital, developers, and businesses looking for Bitcoin-native infrastructure
* 🔸However, skepticism remains: the IMF has cautioned about Bitcoin’s volatility and operational risks in a banking model
➡️MY POV:
A Bitcoin-only bank could redefine national banking and institutionalize crypto at the country level. Yet, mixed signals from international backers and legislative hurdles remain challenges ahead.
* #CryptoNews
* #BitcoinBank
* #BitcoinNation
* #CryptoHub
* #BitcoinOnly