El Salvador Approves Bitcoin-Only Banks for Accredited Investors
- Lyla Velez
- August 10, 2025
- Policy
- 0 Comments
- Main event reflects regulatory shifts in crypto banking.
- Historic step for national Bitcoin-only banking.
- Institutional focus, excluding retail customers.
El Salvador’s government has authorized banks to exclusively operate as Bitcoin banks for accredited investors, marking a world-first legal regulation. The move, backed by President Nayib Bukele and overseen by the Comisión Nacional de Activos Digitales, aims to strengthen cryptocurrency adoption in the nation.
The approval of the Investment Banking Law in El Salvador is the first of its kind globally, allowing banks to operate completely as Bitcoin banks for certified investors. The initiative is aimed at attracting foreign investment and ensuring financial innovation.
Under the new law, licensed banks can serve sophisticated investors, holding a Digital Asset Service Provider license for Bitcoin operations. Juan Carlos Reyes, chairman of CNAD, emphasized El Salvador’s role in pioneering regulated crypto adoption.
The law necessitates a $50 million capital requirement for banks seeking to operate as Bitcoin banks. These services are exclusive to accredited investors, excluding direct retail market access. The regulation could potentially boost Bitcoin flows and influence stablecoin use regionally.
According to Tether CEO Paolo Ardoino, partnerships with countries like Bolivia could see increased usage of USD-stablecoins for settlement. Institutional involvement may drive more Bitcoin-based financial products, solidifying El Salvador’s financial system.
“The new Investment Banking Act allows private investment banks to provide services to ‘sophisticated investors’ in both fiat and foreign currencies and to hold a Digital Asset Service Provider (PSAD) license to engage in digital asset business such as Bitcoin. Banks holding PSAD licenses can choose to operate entirely as Bitcoin banks.” — Juan Carlos Reyes, Chairman, CNAD
No similar national precedent exists where banks operate exclusively as Bitcoin institutions. The 2021 declaration of Bitcoin as legal tender in El Salvador created fluctuating local volumes but had mixed economic impacts. This law narrows its focus on institutional servicing.
Insight into the potential outcomes highlights new regulatory frameworks and technological advancements in financial markets. Continued watchfulness around global crypto market reactions remains vital as El Salvador reinforces its pioneering stance on Bitcoin-centric policy.
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