El Salvador proposes the creation of private investment banks in Bitcoin – DiarioBitcoin

It is expected that these entities will deepen the adoption and use of digital currency for the financing of projects and initiatives, which could be done both in Bitcoin as with US dollars.

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• Nayib Bukele presented a proposal for the creation of Private Investment Banks (BIP)
• These entities will be able to finance projects and initiatives both in Bitcoin as with US dollars
• The proposal is under evaluation by the committees and congressmen of the Assembly local
• The share capital of said entities must exceed USD$50 million and have two shareholders

Everything seems to indicate that the plans for Bitcoin in El Salvador they will go to the next level, now contemplating the creation of new investment banks that can offer services with both dollars and the main digital currency.

They propose the creation of the Private Investment Banks (BIP)

The idea was presented to the assembly by the Salvadoran president, Nayib Bukele, who proposed the creation of the Private Investment Banks (BIP) in an attempt to deepen the adoption of the main digital currency from the financial products and services sector.

In this regard, the ambassador of El Salvador in the US, Milena Mayorga, highlighted that the objective is for investors to have diversified financing options and fewer restrictions compared to what is seen in traditional banks. The initiative is aligned with the economic strategy managed by the Central American nation, which seeks to reach more global investors, as well as promote economic growth with the support of the main digital currency.

In their proposal, the BEEP They would operate much more flexibly than traditional banking, with the aim of attracting a greater number of investors. They will also eliminate restrictions on loans and credits to encourage more dynamic practices, which allow risk taking beyond 25% of the asset fund.

Regarding its constitution, the social capital of the BEEP It must be a minimum of USD $50 million, and must have at least two shareholders who may be foreigners.

For now, the legislative proposal for the creation of the BEEP is under evaluation by the Technology, Tourism and Investment Commission of the Assembly of El Salvadorso it is expected that there will be consultations, reviews and debates to adjust details, both within the commission and among other parliamentarians.

Strategy Bitcoin in El Salvador

The proposal for the creation of the BEEP It aligns with the Salvadoran government’s strategy to further deepen the adoption and use cases related to the main digital currency.

For example, we have mining plans supplied with geothermal energy. According to a recent report, the Central American nation has mined about 474 BTC since he adopted Bitcoin in 2021.

Previously, the Salvadoran government launched a new web portal in alliance with Mempool to allow users to track reservations in real time Bitcoin national. According to the website, El Salvador currently has a total of 5,784.76 BTC for a value greater than USD $385.4 million.

Article by Angel Di Matteo / DailyBitcoin

Picture of DiarioBitcoin, under free use license

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.