The Assembly of El Salvador has passed a law allowing large financial institutions with capital of at least $50 million to obtain licenses for providing services related to bitcoin and other cryptocurrencies. Under the new legislation, such institutions are classified as investment banks and are subject to separate regulation, distinct from traditional commercial banks. This decision expands the institutional architecture of the country's financial system by creating a regulated entity that can complement the existing banking infrastructure, as noted by Deputy Dania Gonzalez.
The new law is focused on attracting large investors with liquid assets over $250,000. Such clients will be able to use financial instruments related to cryptocurrencies, including bitcoin (BTC), which opens new opportunities for institutional capital in El Salvador.
The decision of El Salvador's authorities reflects a change in priorities in the country's cryptocurrency policy. If earlier efforts were aimed at popularizing bitcoin among the population, now the emphasis is shifting towards large institutional players. This is due to the low level of cryptocurrency usage among citizens: according to sources, only 1% of monetary transfers in the country are executed in bitcoins, and only 20% of Salvadorans actively use cryptocurrency.
In early 2025, El Salvador abandoned the mandatory requirement for businesses to accept bitcoin as legal tender. This step was taken under an agreement with the International Monetary Fund (IMF) to obtain a $1.4 billion loan. Despite this, President Nayib Bukele emphasizes that the country continues to increase its bitcoin reserves by purchasing one BTC daily.
The legalization of bitcoin in El Salvador in 2021 made the country a pioneer in the field of cryptocurrency, but the results have been mixed. Despite the authorities' efforts, including the launch of the Chivo wallet and the installation of crypto ATMs, bitcoin's widespread adoption among the population has not occurred. Nevertheless, the country continues to increase its cryptocurrency reserves, which are estimated at $583 million (6,158 BTC) as of April 2025.
The new law may serve as a catalyst for attracting foreign capital and strengthening El Salvador's position as a cryptocurrency hub. However, the success of this initiative will depend on the authorities' ability to balance the IMF's regulatory requirements and ambitious plans to integrate cryptocurrencies into the economy. In a situation where only 11% of registered bitcoin service providers continue to operate, the country faces the challenge of increasing trust in cryptocurrencies both among citizens and institutional investors.
El Salvador's decision to allow banks to work with bitcoin and serve large clients highlights the country's drive to remain a leader in cryptocurrency innovation. This move could attract significant investment, but requires careful regulation and increased financial literacy among the population. While President Bukele continues to promote the bitcoin strategy, the future of El Salvador's crypto-economy remains under the watchful eye of the global community.