El Salvaodr’s president Nayib Bukele has proposed the establishment of a Bitcoin bank just two weeks into his second term.
The initiative aims to capitalize on the nation’s pioneering embrace of Bitcoin, following its adoption as legal tender in 2021.
Max Keiser, Senior Bitcoin Advisor to President Bukele, announced the news on social media, stating, “President Bukele hits ground running in new term with new legislation establishing a #BITCOIN BANK in El Salvador.”
Keiser emphasized the bank’s potential to attract significant Bitcoin investments, allowing borrowers to collateralize their Bitcoin without counterparty risk.
He predicted that this influx could dramatically increase El Salvador’s GDP and improve its credit rating to investment grade within 24 months.
Cathie Wood, CEO of ARK Invest, had previously estimated a tenfold GDP growth for El Salvador over the next five years.
Keiser noted that this new proposal makes Wood’s ambitious forecast “WAY MORE LIKELY.”
Milena Mayorga, El Salvador’s Ambassador to the United States, further elaborated on the plan.
She highlighted that the proposed institution, named the Bank for Private Investment (BPI), aims to diversify financing options for potential investors.
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“As part of our economic plan for El Salvador, we propose a BPI, where we can diversify the financing options offered to potential investors in Dollars and #Bitcoin,” she tweeted.
The establishment of a Bitcoin bank is part of a broader economic strategy to leverage cryptocurrency’s potential for financial inclusion and economic growth.
By providing more flexible financing options, the government hopes to attract foreign investment and stimulate domestic economic activity.
What’s Next: As El Salvador continues to innovate within the cryptocurrency space, industry stakeholders and investors are closely watching these developments.
For those interested in gaining deeper insights into the regulatory impacts and investment opportunities in the digital asset sector, Benzinga’s Future of Digital Assets event on Nov. 19 will be a pivotal forum.
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