Bukele proposes creating private Bitcoin investment banks

Nayib Bukele, president of El Salvador, submitted to the national assembly the proposal to create private investment banks (BIP) that can offer services in both dollars and Bitcoin.

This is a new step by the president, a cryptocurrency enthusiast, in an attempt to “deepen the adoption of the main digital currency from the financial products and services sector.”

According to the country’s ambassador to the United States, Mireya Mayorga, the goal is to offer investors tools that promote diversified financing as well as the reduction of restrictions, compared to the dynamics of traditional banks.

This proposal from Bukele is aligned with the national economic strategy, “which seeks to reach more global investors, as well as promote economic growth with the support of the main digital currency.”

The information available about BIPs is that they would have a more flexible operation with respect to traditional banking, to attract more investors. “In addition, they will eliminate restrictions on loans and credits to encourage more dynamic practices, which allow risk taking beyond 25 % of the asset pool.”

The minimum capital stipulated for its constitution will be USD 50 million. Likewise, they must have at least two shareholders who may be foreigners.

President Bukele’s proposal is under evaluation by the Technology, Tourism and Investment Commission of the country’s Assembly, pending consultations, reviews and corresponding debates by parliamentarians.

M.Pino

Source: diariobitcoin

(Reference image source: Jonathan Borba in Unsplash)

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