Bitcoin Banking Laws Reformed by El Salvadoran Government
El Salvador is poised for a significant shift in its banking sector with the government’s proposal to amend banking laws and pave the way for private investment banks (PIBs) to offer Bitcoin and cryptocurrency services.
This initiative, presented to the National Assembly’s Technology, Tourism, and Investment Commission, outlines the creation of PIBs that can provide a range of services related to Bitcoin. Stablecoins, and other financial instruments. If approved, these banks would support economic risk management, investment management. And other derivatives, supporting legal tender in El Salvador including the U.S. dollar and Bitcoin.
However, access to these services would be limited to sophisticated investors who meet stringent asset and knowledge requirements. With PIBs mandated to have a starting capital of $50 million. The government views these reforms as crucial for fostering economic growth and attracting investment.
Clever Robot News Desk 17th June 2024
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