El Salvador is poised to make history again in the cryptocurrency world, with plans to establish the first-ever Bitcoin bank, as announced by the National Bitcoin Office on August 7, 2025, per Cointelegraph. President Nayib Bukele’s administration, which made Bitcoin legal tender in 2021, is pushing this initiative to provide specialized financial services for Bitcoin investors, operating in both U.S. dollars and BTC. The move aims to cement El Salvador’s reputation as a global leader in digital currency adoption, following its trailblazing embrace of cryptocurrency.
The proposed Bank for Private Investment (BPI) will offer diversified financing options with fewer restrictions than traditional banks, according to a June 14 report by El Mundo. “As part of our economic plan for El Salvador, we propose a BPI, a private investment bank, where we can diversify the financing options offered to potential investors in Dollars and Bitcoin,” Salvadoran Ambassador to the United States Milena Mayorga stated on X. The bank requires a minimum capital of $50 million and at least two shareholders, who may be foreign, and could seek approval to provide digital asset services, per Cointelegraph.
The proposal, driven by Economy Minister María Luisa Hayem under Bukele’s direction, awaits legislative approval from the Technology, Tourism, and Investment Commission, per El Mundo. If passed, the bank will not face traditional banking limits, such as restrictions on loans exceeding 25% of asset funds to a single entity or ties to foreign financial institutions, according to the report. This flexibility is designed to attract both domestic and international investors, aligning with Bukele’s vision of a tech-forward economy.
Key features of the proposed Bitcoin bank include:
- Dual Currency Operations: Will handle transactions in both Bitcoin and U.S. dollars.
- Minimal Restrictions: Exempt from certain traditional banking regulations.
- Investment Requirements: Needs $50 million capital and at least two shareholders.
Despite El Salvador’s crypto enthusiasm, challenges persist. A 2024 Yale study found low trust in Bitcoin and the Chivo Wallet, with many Salvadorans abandoning the app after claiming a $30 sign-up bonus, per Yale Insights. Bitcoin’s legal tender status was also scaled back in December 2024 to secure a $1.4 billion IMF loan, making its use voluntary, per BBC News. However, Bukele’s government continues to buy Bitcoin daily, holding 6,209 BTC as of June 2025, worth about $500 million, per Cointelegraph. The Bitcoin bank proposal has sparked excitement on X, with users like @beincrypto calling it a “major leap” for El Salvador’s crypto revolution. As the nation navigates regulatory hurdles, this bold step could redefine global financial innovation.
Sources: Cointelegraph, El Mundo, Yale Insights, BBC News, X posts
