Bitcoin News Today: El Salvador Eyes World’s First Bitcoin Banks With $50M Capital Framework

El Salvador is advancing its digital currency ambitions by reportedly preparing to launch the world’s first Bitcoin banks. The country’s Bitcoin Office announced the initiative on August 8, 2025, through a social media post, describing the nation as “Bitcoin Country” and hinting at the arrival of Bitcoin Banks as part of an evolving financial strategy [1]. This development marks the next phase following El Salvador’s 2021 decision to adopt Bitcoin as legal tender alongside the U.S. dollar.

The government has not yet released detailed specifications for the new financial services. However, the initiative is expected to include Bitcoin-based deposit, lending, and payment systems [2]. Operating under a $50 million capital framework, these institutions would aim to create a national infrastructure that supports Bitcoin as a core currency [3]. El Salvador’s continued investment in Bitcoin is underscored by the country’s public Bitcoin holdings, which include 6,262.18 BTC, valued at over $730 million [4].

Max Keiser, the president’s senior Bitcoin adviser, has emphasized the broader implications of the shift, describing Bitcoin’s adoption in El Salvador as “unstoppable” and a part of a global financial transformation. He highlighted Bitcoin’s potential to absorb $400 trillion in global stored value, challenging the dominance of traditional banking systems [6]. Keiser and his wife, who leads the Bitcoin Office, have long promoted the use of cryptocurrency, shaping policy since 2021.

The move has drawn international attention, with countries like Bolivia reportedly studying El Salvador’s model [5]. At the same time, the strategy has faced skepticism from international institutions such as the International Monetary Fund (IMF), which has raised concerns about the risks associated with Bitcoin adoption [8]. Despite these challenges, El Salvador has continued to attract interest from major cryptocurrency players, including Tether, which has established a presence in the country [9].

The proposed Bitcoin banks would build on existing infrastructure like the Chivo wallet, a digital tool currently used by citizens to transact in Bitcoin. Banking services could eventually include Bitcoin-denominated accounts, with loans and more complex financial products likely to follow. However, no official documentation has been released, and the government has not specified a timeline for the launch [10].

As El Salvador moves toward a fully integrated Bitcoin financial system, the country remains the only nation to adopt the cryptocurrency as legal tender. Other nations have explored similar ideas but have not yet implemented national-level banking services using Bitcoin [11]. The initiative represents a bold step in El Salvador’s digital currency journey, with outcomes that could influence global cryptocurrency policies in the years to come.

Sources:

[1] (https://www.ainvest.com/news/bitcoin-news-today-el-salvador-launch-bitcoin-banks-50m-capital-framework-2508/)

[2] (https://cryptoslate.com/el-salvador-hints-at-bitcoin-banks-as-400-trillion-wealth-shift-gains-steam/)

[10] (https://coinpedia.org/news/el-salvador-plans-worlds-first-bitcoin-banks/)

[11] (https://www.ainvest.com/news/bitcoin-news-today-el-salvador-eyes-bitcoin-banks-deepen-crypto-integration-2508/)