Big news coming out of El Salvador — the country just passed its Investment Banking Law, and it could be a huge win for Bitcoin!
Under the new rules, investment banks will be able to hold BTC and other digital assets on their balance sheets, and even operate entirely as Bitcoin banks if they choose, as long as they have a PSAD (Digital Asset Service Provider) license. These banks can also work in legal tender and foreign currencies, catering to “sophisticated” investors — the equivalent of accredited investors in the U.S.
According to Juan Carlos Reyes, president of El Salvador’s crypto regulator CNAD, this move opens the doors for serious institutional involvement and positions the nation as an emerging global hub for Bitcoin and digital finance.
The law is designed to attract foreign investment and strengthen El Salvador’s position as one of the most pro-crypto countries in the world. It comes alongside other major international partnerships — including recent talks with Pakistan on Bitcoin adoption and a cooperation agreement with Bolivia’s central bank to promote crypto as an alternative to fiat, especially during currency shortages.
With institutional investors already playing a big role in El Salvador’s crypto growth, this could be the next big step that cements its place as a leader in nation-level Bitcoin adoption.
Looks like El Salvador is going all-in on Bitcoin banking — and the global crypto stage is watching closely.
