El Salvador Proposes New 'Bank for Private Investments' to Boost Crypto Business
President Nayib Bukele's government in El Salvador has proposed a new banking form, the 'Bank for Private Investments (BPI)', allowing advanced investors to conduct business in cryptocurrencies with fewer restrictions. The bill, sent to the National Assembly, aims to integrate bitcoin and stablecoins as payment methods into the official financial system.
The BPI targets 'experienced' investors with at least $250,000 in liquid assets or $500,000 in securities. It would operate with bitcoin and stablecoins, offering financial services in both US dollars and bitcoin with fewer restrictions than traditional banks. The BPI would be exempt from certain laws, such as credit and foreign bank relationship restrictions, and requires a minimum capital of $50 million and at least two shareholders.
The government of El Salvador and a private investment firm known as Blue Owl Capital are reportedly the initial shareholders. Bukele's strategy is to transform El Salvador into a financial hub for cryptocurrencies. Stablecoins can boost international trade, while bitcoin can establish itself as a unit of account for loans and credits, potentially attracting foreign investors and founders.
Once approved by the National Assembly, the BPI can come into force, marking a significant step in El Salvador's integration of cryptocurrencies into its official financial system. This move could open up new opportunities for advanced investors and potentially boost international trade and investment in the country.
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