Three years after making Bitcoin legal tender to encourage mainstream adoption, El Salvador is establishing a new framework aimed at high-net-worth and institutional investors.
The country’s Legislative Assembly has approved an Investment Banking Law that permits licensed institutions with at least $50 million in capital to offer services related to Bitcoin and other digital assets. However, access to these services will be restricted to “sophisticated investors,” defined as individuals with at least $250,000 in available funds and accredited financial knowledge.
Investment banks that meet the capital threshold will be authorized to issue bonds, arrange public-private partnerships, and provide or issue digital assets. According to lawmaker Dania González, the goal is to “attract international private capital” and transform El Salvador into a specialized regional financial hub.
This financial policy shift coincides with President Nayib Bukele’s consolidation of political power. Lawmakers recently approved constitutional changes extending presidential terms from five to six years and abolishing term limits, a move that could theoretically keep the self-described “Bitcoin evangelist” in office for decades.
Meanwhile, Bukele’s administration has continued to expand the country’s reported Bitcoin holdings, despite agreeing to pause public purchases under a $1.4 billion loan deal with the International Monetary Fund (IMF). While the IMF stated in a July consultation that El Salvador is complying with the requirement for “non-accumulation of Bitcoin” by the public sector, blockchain data from Arkham Intelligence shows the government now controls approximately 6,264 Bitcoin, worth about $739 million. This is an increase from around 6,160 in April.
Some analysts suggest the increase may reflect transfers between government wallets rather than new purchases made since the IMF agreement was signed in December.
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