El Salvador’s President Nayib Bukele has proposed the establishment of private investment banks in the country, which, if approved, would offer financial services to investors in the leading cryptocurrency. This was reported by Cointelegraph.
“As part of our economic plan for El Salvador, we propose a Bank for Private Investment, where we can diversify the financing options offered to potential investors in dollars and bitcoin,” wrote El Salvador’s ambassador to the US, Milena Mayorga.
As part of our economic plan for El Salvador, we propose a BPI, Bank for Private Investment, where we can diversify the financing options offered to potential investors in Dollars and #Bitcoin. ?#BitcoinBank#EconomicFreedom https://t.co/3hfwVvTSeX
— Milena Mayorga (@MilenaMayorga) June 14, 2024
According to the proposal, such banks would serve bitcoin investors with fewer restrictions compared to traditional financial institutions.
President Bukele hits ground running in new term with new legislation establishing a #BITCOIN BANK in ??
— Borrowers can collateralize their pristine, no counter party risk #Bitcoin
Billions of #Bitcoin will flood into El Salvador upping GDP
?? credit rating hits IG within 24… https://t.co/1olq9OWy6k
— Max Keiser (@maxkeiser) June 14, 2024
“President Bukele enters a new term with new legislation establishing a bitcoin bank in El Salvador,” wrote television host and presidential advisor Max Keiser.
He also mentioned a recent forecast by ARK Invest CEO Cathie Wood. According to her, during Bukele’s five-year presidency, El Salvador’s GDP could increase tenfold. This would be facilitated by accelerated economic reforms driven by the leading cryptocurrency and artificial intelligence.
In February, Bukele won the election, promising to maintain El Salvador’s bitcoin strategy. In September 2021, the country became the first in the world to recognize digital gold as legal tender.
Earlier, the government highlighted the role of cryptocurrency adoption in the country’s recovery from crisis and the growth of tourism. El Salvador attracted investments through the launch of a “bitcoin freedom visa” and announced the issuance of crypto bonds based on digital gold worth $1 billion.
El Salvador has independently mined 473.5 BTC over three years, and the country’s total cryptocurrency reserves have reached approximately 5748 BTC.