El Salvador legalizes bitcoin banks with new Investment Banking Law

El Salvador has adopted the Investment Banking Law, allowing certain financial institutions to hold bitcoin and other digital assets on their balance sheets. According to the Commission for Digital Assets (CNAD), banks holding a crypto service provider (PSAD) license will be able to operate exclusively as bitcoin banks and offer services to experienced investors.

The new legislation authorizes these institutions to underwrite companies, issue securities, and operate in both local and foreign currencies. The measure aims to attract institutional investors and strengthen international partnerships in the crypto-finance sector.

Authorities believe that the change in the legal framework will increase El Salvador’s attractiveness as a regional hub for digital finance and stimulate inflows of institutional capital.

Supporters of the law estimate it will accelerate international investments and strengthen the country’s position on the global financial map. Critics argue that the benefits will mainly favor the state and large corporations, pointing out that the adoption of bitcoin has not yet brought significant advantages to ordinary citizens.