El Salvador changes strategy: Bitcoin now targets the ultra-rich and large organizations

On August 7, #ElSalvador officially passed the new Investment Banking Law, paving the way for large financial institutions with a minimum capital of 50 million USD to register as investment banks. A notable point is that these banks can provide services in both fiat currency and Bitcoin, but only serve "sophisticated investors" holding at least 250,000 USD in liquid assets.

According to the law, investment banks can open accounts, receive deposits, and make payments using digital assets. The Central Reserve Bank will issue regulations on capital, risk management, and operation methods, while the Financial System Supervisory Agency will play a role in approving, supervising, and has the authority to close violating banks.

Notably, the asset requirements for investors will be reviewed every two years to ensure alignment with market conditions.

This move indicates that President #NayibBukele is changing the Bitcoin strategy: from focusing on the general public to large financial entities and wealthy investors. The reason is that the level of BTC usage in daily life is still too low — only about 1% of remittances in early 2024 use Bitcoin, and most people still view BTC as a store of value rather than a payment tool.

👉 With the new law, El Salvador is reshaping its position: instead of widely adopting Bitcoin, the country aims to become a digital financial hub for the global elite. #anh_ba_cong