El Salvador Pioneers Bitcoin Banking with New Investment Banking Law – El Salvador in English

El Salvador has taken another bold step in its financial modernization strategy with the approval of the Investment Banking Law, a pioneering regulation that enables the creation of Bitcoin-focused banks and positions the country as a global hub for digital asset finance.

With 55 votes in favor, the Legislative Assembly passed the law this week, establishing a specialized framework for institutions that will provide advanced financial services such as asset management, mergers and acquisitions, complex financing, and market analysis. Crucially, it legally authorizes banks to operate with Bitcoin (BTC) and other digital assets under the supervision of the Central Reserve Bank (BCR) and the Superintendency of the Financial System (SSF).

The regulation targets Sophisticated Investors—those with net assets of at least $250,000—who can hold cash, BTC, treasury bonds, tokenized gold, and other qualifying assets. These investment banks will be able to manage deposits, issue financial instruments, conduct transactions in both traditional and digital markets, and act as issuers or service providers for Bitcoin, stablecoins, and commodity-backed tokens.

Authorities expect the law to attract international private capital, channeling financing into strategic sectors such as infrastructure, energy, technology, and urban development. The BCR will set technical and legal requirements, while the SSF will oversee authorization for these new institutions.

Max Keiser, senior advisor on Bitcoin policy, explained the law’s impact: “With a bank that allows you to deposit your Bitcoin and lend with it, you have the opportunity to create new companies. It’s part of how capitalism works.”

The move complements El Salvador’s Digital Asset Issuance Law and follows global trends where fintech and cryptocurrency firms—particularly in the United States—are seeking banking licenses to integrate blockchain technology into mainstream finance.

With this legislation, El Salvador strengthens its position as a world leader in Bitcoin adoption, pioneering regulated integration of cryptocurrency into national banking systems while setting the stage for a next-generation financial services industry.

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