El Salvador Authorizes Bitcoin for Investment Banks
- El Salvador lets investment banks manage Bitcoin and digital assets.
- Key figures include President Nayib Bukele and Juan Carlos Reyes.
- Potential shift in cryptocurrency investments in El Salvador.
El Salvador introduced a new Investment Banking Law in August 2025, allowing investment banks to manage Bitcoin for accredited investors, marking a major shift in the country’s financial landscape.
This legal change is expected to attract global investment, differentiate El Salvador from regional peers, and bolster its reputation as a crypto-friendly nation while inviting speculation on market impacts.
El Salvador approved a law in August 2025 allowing investment banks to manage Bitcoin, marking a significant shift in the country’s financial sector.
This move positions El Salvador as a leader in crypto finance, attracting global investment and potentially reshaping regional economic dynamics.
Investment Banks Gain Bitcoin Management Rights
El Salvador’s new law enables investment banks to hold Bitcoin and digital assets for accredited investors. This distinction targets sophisticated investors, differentiating from commercial banks.
President Nayib Bukele, known for previous Bitcoin initiatives, and Juan Carlos Reyes, spearheaded this approach, enabling banks to operate in digital assets with a PSAD license.
International Investors Eye El Salvador’s Bitcoin Legislation
The law aims to attract international investments and institutional finance into El Salvador’s economy. This shift may influence other Latin American markets toward crypto adoption.
Concerns about macroeconomic stability arise, amid positive reactions from digital asset communities and desires for financial innovation. The dual operation allows flexibility in currency management.
IMF Concerns Over El Salvador’s Crypto Strategy
This decision follows El Salvador’s landmark 2021 Bitcoin legal tender law, which faced global scrutiny. Past IMF warnings highlighted potential financial instability risks.
Experts like Juan Carlos Reyes suggest robust regulatory frameworks can position El Salvador as a major player. Data-driven strategies may shape future crypto investments in the region.
“The new Investment Banking Law allows private investment banks to operate in legal tender and foreign currencies for ‘Sophisticated Investors’ and to engage in digital assets like Bitcoin with a Digital Asset Service Provider (PSAD) license. With a PSAD license, a bank could choose to operate entirely as a Bitcoin bank.” — Juan Carlos Reyes, President, Commission of Digital Assets (CNAD)
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