The El Salvador crypto sector could again witness some good news, as officials have spoken positively about a possible Bitcoin bank in the country.
The El Salvador crypto industry has had a very crypto-friendly government. Authorities in the government have also taken multiple initiatives to aid crypto adoption in the country. A similar initiative will again take place in the form of a Bitcoin bank. These banks will be exclusively for crypto services, with much less restrictions than for traditional banks. A leading news firm in the country reported the development.
Moreover, the country’s Ambassador to the United States also published a post on the bank, which attracted the spotlight. Ambassador Milena Mayorga termed the bank as the ‘Bank for Private Investment.’ Other officials in El Salvador’s government also hailed the progress for the Bank for Private Investment. Meanwhile, Nayib Bukele, who took office as El Salvador’s President two weeks back, has been a proponent of the bank.
The media report also shared some insights on the features of the bank. Firstly, there will not be loan restrictions. The bank will not be barred from interacting with overseas companies linked to their shareholders.
Further, the bank will be able to grant credit higher than 25% of its asset fund. The bank would also operate in any legal tender, including USD and BTC. New private investments must have a minimum share capital amounting to $50 million, with at least two shareholders.
Last month, Argentina, reeling under high inflation, had taken advice on crypto policies from El Salvador. A large-scale Bitcoin education program is also very prominent in the country. It is leading the scope for higher crypto adoption. At the same time, private entities, such as hotels, have endorsed crypto use cases in El Salvador!
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