Bitcoin News Today: El Salvador Enacts Law to Enable Bitcoin Banking for Accredited Investors

El Salvador has moved to institutionalize its digital currency strategy by enacting the Investment Banking Law, which allows licensed financial institutions to hold and trade Bitcoin and other digital assets on their balance sheets. The law enables these institutions to serve only experienced investors—akin to accredited investors in the United States—while offering services such as underwriting, issuing securities, and operating in both local and foreign currencies [1]. Juan Carlos Reyes, president of the Commission for Digital Assets (CNAD), stated that institutions holding a crypto service provider (PSAD) license can now operate exclusively as Bitcoin banks [2]. These banks are expected to bolster El Salvador’s position as a regional financial technology hub, potentially attracting institutional capital and fostering innovation in the digital asset space [3].

The regulatory shift builds on El Salvador’s adoption of Bitcoin as legal tender in 2021 and reflects the government’s broader vision to integrate digital assets into the national financial infrastructure. The new law also mandates a minimum capital requirement of $50 million for banks seeking to offer Bitcoin-related services, a threshold aimed at ensuring the stability and credibility of the emerging sector [4]. Analysts suggest that this could encourage institutional demand for Bitcoin, particularly among qualified investors seeking exposure to digital assets [5]. However, some forecasts indicate that the broader economic benefits for ordinary citizens remain uncertain, with critics noting that the advantages of Bitcoin adoption have yet to materialize for the general population [6].

El Salvador continues to strengthen its international partnerships in the crypto space. In July 2025, President Nayib Bukele held discussions with Pakistan’s Minister of State for Digital Assets and Blockchain, Bilal bin Saqib, to explore the implementation of Bitcoin at the state level and energy policies supporting mining operations [7]. Additionally, on July 30, the Central Bank of Bolivia and CNAD signed a memorandum of understanding to promote the use of cryptocurrencies as alternatives to fiat currency. The agreement was highlighted as a response to Bolivia’s currency crisis, which has hindered foreign trade [8]. Tether CEO Paolo Ardoino noted that these conditions have led to increased use of dollar-pegged stablecoins in settlement transactions [9].

While supporters view the new law as a bold step toward financial modernization, opponents caution that the benefits may be concentrated among the state and large corporations, with limited advantages for everyday citizens. The law is expected to shape El Salvador’s role in the evolving global financial landscape, positioning the country as a pioneer in Bitcoin banking and digital asset regulation [10].

Source: [1] https://cointelegraph.com/news/bitcoin-investment-banks-coming-el-salvador

[2] https://www.dlnews.com/articles/regulation/el-salvador-courts-cryptos-deepest-pockets-new-banking-law/

[3] https://elsalvadorinenglish.com/2025/08/10/el-salvador-pioneers-bitcoin-banking-with-new-investment-banking-law/

[4] https://www.xt.com/en/blog/post/50m-capital-requirement-set-for-bitcoin-investment-banks-in-el-salvador

[5] https://cryptonews.com/news/bitcoin-price-prediction-el-salvadors-new-law-fuels-institutional-demand-whats-the-btc-outlook/

[6] https://coinpaper.com/10453/el-salvador-approves-investment-banking-law-enabling-bitcoin-banks

[10] https://www.cryptoninjas.net/news/el-salvador-opens-door-for-fully-bitcoin-based-banks-targeting-250k-investors/