El Salvador to Launch World’s First Bitcoin Bank
El Salvador is planning to launch Bitcoin-based banking, according to a social media post. The announcement is based on the economic strategy of President Nayib Bukele.
Most likely, we are talking about the creation of banking institutions designed specifically for Bitcoin transactions.
In the absence of details, one can only guess whether the proposed Bitcoin-banks offer deposits, loans and financial investment instruments in BTC.
The announcement builds on Nayib Bukele’s proposal last year to create a Private Investment Bank, which would allow Salvadoran banks to operate with minimal regulation compared to the traditional banking sector. Banks would also have fewer restrictions on partnering with international banks and more flexibility in lending.
Bukele’s original plan called for a minimum share capital of $50 million and at least two shareholders.
Bitcoin Advisor to El Salvador President Max Kaiser believes that the introduction of Bitcoin into the banking sector will increase the country’s GDP.
Director General Ark Investment Cathie Wood predicts that El Salvador will experience higher rates of economic growth in the next five years after the idea is implemented.
El Salvador is moving forward with a strategy to adopt the leading cryptocurrency as legal tender in September 2021, with the launch of the state-backed Chivo wallet and a geothermal Bitcoin mining project.
