El Salvador's new Investment Banking Law allows banks to hold Bitcoin.

According to reports, Juan Carlos Reyes, the chairman of the El Salvador Crypto Assets Commission (CNAD), stated that the new Investment Banking Law allows investment banks to hold Bitcoin and other digital assets on their balance sheets, providing cryptocurrency services to mature investors (similar to qualified investors in the U.S.). The new law permits private investment banks to serve 'mature investors' with legal tender and foreign currencies, and allows them to hold a Digital Asset Service Provider (PSAD) license to conduct businesses related to digital assets like Bitcoin. Banks with a PSAD license can choose to operate entirely as Bitcoin banks. Proponents of this law argue that it will stimulate foreign investment in El Salvador and position it as an emerging financial center. Previously, El Salvador planned to establish the world's first Bitcoin bank.