Under the newly passed investment banking decree in El Salvador, Bitcoin (BTC) investment banks are set to enter the country. The decree establishes regulatory standards for investment banks that differ from those of commercial banks.
Investment banks may hold Bitcoin and other digital assets on their financial statements and provide crypto services to 'mature' investors. As Juan Carlos Reyes, chairman of the El Salvador Digital Assets Committee (CNAD), told Cointelegraph:
"The new investment banking law allows private investment banks to operate in both fiat and foreign currencies and conduct Bitcoin transactions through licensed digital asset service providers (PSAD)."
The law encourages foreign investment in El Salvador and positions it as an emerging financial center, supporters claim.
Institutional investors have been a major driving force behind El Salvador's crypto adoption, attracting many crypto companies and financial enterprises. However, critics argue that the country's Bitcoin policy does not significantly benefit the general public, with the main beneficiaries being the government and large corporations.
El Salvador deepens international cooperation to promote crypto development.
El Salvador's President Nayib Bukele met with Pakistan's Minister of Cryptocurrency to discuss national-level Bitcoin strategies and energy policies to promote cooperation in crypto mining.
On July 30, the Central Bank of Bolivia signed a memorandum of understanding with CNAD to promote cryptocurrency as an alternative to traditional fiat currency.
In the face of Bolivia's currency crisis, the agreement promotes the use of USD stablecoins as a medium of exchange.
