- Law allows licensed institutions to operate as bitcoin banks serving experienced investors.
- Institutions can underwrite companies, issue securities, and use local/foreign currencies.
- El Salvador signs cooperation MOUs, expanding crypto use amid global financial shifts.
El Salvador has approved the Investment Banking Law, opening the door for certain financial institutions to hold bitcoin and other digital assets on their balance sheets, according to El Salvador reports.
Juan Carlos Reyes, president of the Commission for Digital Assets (CNAD), explained that institutions holding a crypto service provider (PSAD) license will be able to operate exclusively as bitcoin banks. Further, these banks may provide services to experienced investors—clients akin to accredited market participants in the US.
The new legislation permits these institutions to underwrite companies, issue securities, and operate in both local and foreign currencies. Authorities believe this will boost El Salvador’s attractiveness as a regional crypto-finance hub and increase institutional capital inflows.
Supporters argue the regulatory changes will spur international investment and cement El Salvador’s position on the global financial map. Opponents, however, caution that benefits will largely favor the state and large corporations, noting that bitcoin’s introduction has yet to yield significant advantages for ordinary citizens.
El Salvador continues to deepen international crypto-sector ties. In July 2025, President Nayib Bukele discussed with Pakistan’s Minister of State for Digital Assets and Blockchain, Bilal bin Saqib, the implementation of Bitcoin at the state level and energy policies to promote mining.
Moreover, on July 30, the Central Bank of Bolivia and CNAD signed a memorandum of understanding to promote cryptocurrencies as alternatives to fiat currency. Authorities note the agreement’s relevance given Bolivia’s currency crisis hampering foreign trade. Tether CEO Paolo Ardoino highlighted that these conditions have raised the use of dollar-pegged stablecoins in settlement transactions.
