- El Salvador now allows Bitcoin-only banks for the rich, aiming to lure global capital and boost its role as a Latin finance hub.
- The country is growing its Bitcoin stash despite IMF limits, signaling strong commitment to its pro-crypto economic vision.
- Latin American crypto adoption surges as unstable economies push people toward digital assets for savings and investments.
El Salvador has taken another bold step in its Bitcoin journey, allowing banks to operate exclusively as Bitcoin-focused institutions for accredited investors. The move targets high-net-worth individuals and institutional players, aiming to strengthen the country’s position as a regional financial hub. This comes three years after the nation recognized Bitcoin as legal tender, initially focusing on retail adoption.
The Legislative Assembly approved the new Investment Banking Law, creating a separate lane for sophisticated investors. Licensed institutions must have at least $50 million in capital. Access will be limited to investors with $250,000 in freely available funds and certified financial expertise.
New Avenues for Capital and Digital Assets
Under the law, investment banks can issue bonds, arrange public–private partnerships, and provide or issue Bitcoin and other digital assets. Lawmaker Dania González said the reforms aim to “attract international private capital” and enable “funds and high-net-worth actors to set up in the country or use our entities as regional platforms.”
Additionally, the government hopes to establish El Salvador as a Latin American center for specialist finance. This change in policy coincides with President Nayib Bukele’s strengthening political hold. Recently, lawmakers eliminated term limits and increased presidential terms from five to six years, which might let him to hold office for decades.
Bitcoin Holdings and IMF Relations
Bukele’s administration continues to expand Bitcoin holdings despite an IMF agreement to pause public purchases. The International Monetary Fund confirmed compliance with its “non-accumulation” rule in July. However, Arkham Intelligence data shows government wallets now hold around 6,264 BTC worth about $739 million, up from 6,160 in April.
This expansion reflects a broader regional interest in digital assets. Latin America is one of the fastest-growing cryptocurrency markets globally.
Regional Crypto Adoption Trends
According to Rankings Latam, Argentina leads the region with 19.8% of its population owning digital assets. Brazil follows with 18.6%, while El Salvador holds a 15% adoption rate despite state-backed initiatives.
Ownership is concentrated in six countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. Rankings Latam linked these trends to economic instability and limited access to traditional banking. It noted that such conditions not only boost ownership but also accelerate growth.
