Three years after having legalized Bitcoin as a legal as a means of withdrawing users of retail in the cryptography ecosystem, El Salvador creates a separate path for high net and institutional investors.
The law on newly approved investment banks in the Legislative Assembly authorizes approved institutions with at least $ 50 million in capital to offer bitcoin and other digital asset services.
But not everyone will cross the door.
Access will be limited exclusively to “sophisticated investors” – those with at least $ 250,000 in free funds available for free and accredited financial knowledge.
Investment banks that reach the threshold will be authorized to issue bonds, organize public-private partnerships and provide or provide digital assets, including Bitcoin.
The objective is “to attract international private capital” and to authorize “funds and players with high value in the country or to use our entities as regional platforms,” said Dania González legislative, adding that reforms will help shape El Salivador in a specialized financial hub for the region.
The change comes as President Nayib Bukele consolidates power at home.
Earlier this month, legislators approved constitutional changes which extend the presidential conditions of five to six years and abolish the mandate limits.
This is a decision that could theoretically keep the evangelist Bitcoin self -proclaimed in office for decades.
The Bukele administration also continued to extend the Bitcoin Holders reported from the country despite its acceptance of suspending public purchases as part of a $ 1.4 billion loan agreement with the International Monetary Fund.
During its July consultation on article IV, the International Monetary Fund declared that the country was in accordance with the requirements of the program in terms of “non-accumulation of bitcoin” by the public sector.
However, data from Arkham Intelligence’s blockchain show that the government now controls around 6,264 bitcoins, worth around $ 739 million at current prices, compared to around 6,160 in April.
Some analysts suggest that the latest increases can simply reflect the mixed parts between portfolios rather than new purchases, as the IMF agreement was signed in December.
Kyle Baird is the editor of the DL News weekend. Do you have a tip? Email to kbaird@dlnews.com.
