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El Salvador passed a law allowing investment banks to offer Bitcoin and crypto services.
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Only banks with $50M+ in capital can apply.
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Clients must have $250K+ in liquid assets.
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The move shifts focus from retail adoption to institutional investment.
New Rules for Crypto in Banking
El Salvador’s legislature has approved a law enabling well-capitalized financial institutions to become licensed investment banks that can hold Bitcoin and other crypto assets. These banks can serve only “sophisticated investors” with over $250K in liquid assets.
Expanding the Financial System
The law builds on the country’s existing crypto licensing framework, allowing investment banks to add crypto capabilities without creating a separate licensing system. Supporters say it strengthens the institutional side of El Salvador’s financial sector.
From Mass Adoption to Targeted Investment
After failing to drive mass retail Bitcoin use, the government is focusing on attracting institutional capital. The shift aligns with conditions from a $1.4B IMF loan, which required scaling back public-sector Bitcoin purchases.
Current Adoption Rates Remain Low
Despite early hype, only about 1% of remittances use crypto, and just 20% of citizens report adopting it. While the Bitcoin Office claims it still acquires 1 BTC daily, officials told the IMF no new public-sector purchases have been made since the loan deal.
