Bitcoin News Today: El Salvador Enacts Law to Create Bitcoin Investment Banks for Accredited Investors

El Salvador has enacted the Investment Banking Law, shifting its Bitcoin strategy from broad public adoption to a targeted institutional focus. The legislation, passed in August 2025, allows private investment banks with at least $50 million in capital to apply for licenses to operate as Bitcoin banks, offering services such as Bitcoin custody, token issuance, and crypto-linked financial instruments to accredited investors with a minimum of $250,000 in liquid assets [1]. This development integrates crypto services into existing banking frameworks without requiring separate regulatory structures [1].

The law reflects a strategic recalibration from the nation’s 2021 move to adopt Bitcoin as legal tender, an initiative that saw limited retail adoption. Now, the government, led by the Ministry of Economy and figures such as Juan Carlos Reyes, is focusing on attracting international private capital and enhancing financial stability [1]. Lawmaker Dania González emphasized that the reforms are designed to create a regulated financial entity operating alongside traditional banks, supporting the country’s goal of becoming a regional financial hub [1].

This shift is expected to boost institutional demand for Bitcoin in El Salvador, potentially increasing capital inflows into the country’s digital asset market. By enabling investment banks to hold Bitcoin and other digital assets on their balance sheets, the government is signaling its intent to align with global trends in digital asset integration and structured financial frameworks [4].

Despite earlier optimism, Bitcoin’s adoption as legal tender has faced challenges, with only around 1% of remittances processed via cryptocurrency [1]. The government has suspended several Bitcoin-related initiatives following a $1.4 billion loan agreement with the International Monetary Fund (IMF) [1]. Although the Bitcoin Office has claimed to purchase one Bitcoin daily, no new acquisitions have occurred since the IMF deal was finalized, with recent additions to the central reserve wallet reportedly resulting from the transfer of existing holdings [1].

The new law represents a bold step for El Salvador in reshaping its digital finance landscape. Analysts suggest the move could redefine how digital currencies are incorporated into mainstream financial systems, offering a model for other nations exploring institutional-level Bitcoin integration [3]. The government’s continued emphasis on attracting large-scale capital reflects its broader economic strategy, leveraging Bitcoin to bolster its position in the global financial arena [1].

Sources:

[1] El Salvador Shifts Bitcoin Focus to Institutional Investors (https://www.cryptotimes.io/2025/08/10/el-salvador-shifts-bitcoin-focus-to-institutional-investors/)

[2] El Salvador Approves Bitcoin Investment Banks for High- (https://www.ainvest.com/news/bitcoin-news-today-el-salvador-approves-bitcoin-investment-banks-high-net-worth-clients-2508/)

[3] El Salvador is signaling its next move in integrating Bitcoin ... (https://www.facebook.com/Benzinga/posts/el-salvador-is-signaling-its-next-move-in-integrating-bitcoin-into-its-financial/132****473281353/)

[4] Best Crypto to Buy as El Salvador Welcomes Bitcoin ... (https://www.mitrade.com/insights/news/live-news/article-3-1026905-20250810)

[5] El Salvador Enacts Law to Create Bitcoin-Only Banks for ... (https://www.ainvest.com/news/bitcoin-news-today-el-salvador-enacts-law-create-bitcoin-banks-accredited-investors-2508/)

[6] El Salvador 'BTC-Only' Banks for Accredited Investors? ... (https://blockchain.news/flashnews/el-salvador-btc-only-banks-for-accredited-investors)