Bitcoin News Today: El Salvador to Launch World's First Bitcoin-Only Banks in 2025

El Salvador is preparing to launch the world’s first investment banks that will operate exclusively with Bitcoin and U.S. dollars, under a new regulatory framework approved in August 2025. The initiative, led by the National Bitcoin Office (ONBTC), follows the enactment of the Investment Banking Law, which distinguishes the regulation of investment banks from commercial banks and opens the door for financial institutions to hold and manage digital assets [1]. According to Juan Carlos Reyes, president of the Commission of Digital Assets (CNAD), these banks will cater to "sophisticated investors" and operate under a Digital Asset Service Provider (PSAD) license [2]. With such a license, a bank could function entirely as a Bitcoin bank [3].

The new legislation allows investment banks to engage in digital assets and provide crypto-based services, positioning El Salvador as a potential regional hub for digital finance. The government sees the initiative as a way to attract foreign investment and support institutional adoption of Bitcoin. The move aligns with President Nayib Bukele’s broader vision to integrate cryptocurrency into the national economy, following his 2021 decision to recognize Bitcoin as legal tender [4].

The banks are expected to require a minimum capital of $50 million and will operate under a framework designed to support both domestic and international investors [5]. While the government has yet to release detailed timelines for the launch, it has signaled the project’s alignment with the 2024 proposal for a Bank for Private Investment, reflecting an ongoing effort to expand financial services beyond traditional banking systems [6].

However, the initiative has drawn criticism for potentially overlooking the needs of the general population. Detractors argue that the focus on institutional and sophisticated investors may not extend the benefits of Bitcoin adoption to the unbanked majority. Additionally, the International Monetary Fund (IMF) has expressed concerns about the volatility and regulatory risks associated with Bitcoin use in a national financial system [7].

Analysts suggest that the success of these Bitcoin banks will depend on both institutional and public confidence in the cryptocurrency’s stability as a store of value and medium of exchange. While the government has demonstrated political will, widespread adoption will require addressing logistical and educational barriers [8]. These banks will also need to navigate a complex regulatory landscape to ensure international compliance while maintaining their Bitcoin-focused operations [9].

The first Bitcoin bank is expected to launch in 2025, according to a government statement, marking a significant milestone in the global evolution of financial infrastructure [10]. If successful, the project could serve as a model for other nations exploring similar digital finance strategies.

Sources:

[1] El Salvador Plans World’s First Bitcoin Banks, Coinpedia (https://coinpedia.org/news/el-salvador-plans-worlds-first-bitcoin-banks/)

[2] Bitcoin News Today: El Salvador Eyes World's First..., AInvest (https://www.ainvest.com/news/bitcoin-news-today-el-salvador-eyes-world-bitcoin-banks-50m-capital-framework-2508/)

[3] Bitcoin investment banks coming to El Salvador — Gov regulator (https://coinmarketcap.com/community/articles/68978dbd2766ca6c3947f0f4/)

[4] El Salvador says 'Bitcoin banks are coming to Bitcoin country', Cryptopolitan (https://www.cryptopolitan.com/el-salvador-bitcoin-banks-bitcoin-country/)

[7] El Salvador Plans Bitcoin-Only Banks Amid IMF Scrutiny, Bitbo (https://bitbo.io/news/el-salvador-bitcoin-banks/)

[10] The first Bitcoin bank in the World Lights Up in El Salvador, The (https://en.cryptonomist.ch/2025/08/08/revolution-in-finance-the-first-bitcoin-bank-in-the-world-lights-up-in-el-salvador-changing-the-rules-of-the-game/)