“`html
Regulated Bitcoin (BTC) investment banks are arriving in El Salvador, following the approval of El Salvador’s Investment Banking Law on Thursday, which categorizes investment banks under distinct regulations compared to commercial banks.
Investment banks will now be permitted to retain BTC and other digital assets on their balance sheets, as well as provide crypto services to “sophisticated” investors, akin to accredited investors in the United States, Juan Carlos Reyes, head of El Salvador’s Commission of Digital Assets (CNAD), the government’s crypto regulatory organization, informed Cointelegraph. He further stated:
“The new Investment Banking Law permits private investment banks to function in legal tender and foreign currencies for ‘Sophisticated Investors’ and to participate in digital assets like Bitcoin with a Digital Asset Service Provider (PSAD) license. With a PSAD license, a bank might opt to operate entirely as a Bitcoin bank.”
The legislation promotes foreign investment in El Salvador and positions it as an up-and-coming center for finance, supporters of the newly enacted law claim.
Institutional investors have been a significant catalyst for El Salvador’s crypto adoption, as the Central American nation attracts crypto enterprises and financial institutions with its favorable crypto regulatory environment.
Nevertheless, critics argue that BTC adoption in the country and its regulatory measures are not benefiting the average citizen and primarily serves the interests of the government and large corporations.
Related: El Salvador hasn’t purchased Bitcoin since formalizing loan arrangement, IMF states
El Salvador builds international alliances to enhance crypto expansion
El Salvador’s President, Nayib Bukele, held discussions with Bilal Bin Saqib, Pakistan’s state minister for crypto and blockchain, to exchange insights on nation-level Bitcoin adoption and energy strategies to support crypto mining.
“The collaboration fundamentally revolves around how emerging economies, both operating under the IMF program, can utilize technology and various financial instruments for national advancement,” Bin Saqib informed Cointelegraph during an interview.
On July 30, Bolivia’s central bank executed a memorandum of understanding with CNAD to advocate the utilization of cryptocurrencies as an alternative to conventional fiat currencies.
The agreement emerged during a currency crisis in Bolivia, where access to US dollars is limited and challenging, complicating international trade.
This situation has resulted in the increasing use of US-dollar-denominated stablecoins as a means of exchange, as stated by Tether CEO Paolo Ardoino.
Magazine: El Salvador’s national Bitcoin leader has been orange-pilling Argentina
Source link
“`