El Salvador Paves Way For Bitcoin Investment Banks

El Salvador has just approved it new Investment Banking Law, which allows investment banks to not only hold Bitcoin and other digital assets but also to offer full crypto services, but only to "sophisticated investors."

Juan Carlos Reyes, president of El Salvador’s Commission of Digital Assets (CNAD), summarised the entire gist of this reform, saying

"The new law allows private investment banks to operate in legal dn foreign currencies for 'sophisticated investors,' and to engage in digital assets like Bitcoin with PSAD license."

The new PSAD license will allow banks to engage in digital asset activities, such as Bitcoin trading and custody, with just one simple goal-to attract foreign capital and make the country a crypto-friendly financial hub.

Institutional interest has already played a critical role in advancing crypto adoption within the nation, attracting global digital asset firms and innovative financial institutions eager to operate under clearer, crypto-friendly rules.

Despite this optimism, critics argue that El Salvador’s Bitcoin adoption mainly serves the interests of the government and large corporations—not everyday citizens—calling for more inclusive policies to ensure broader benefits from the crypto-driven economy.

Driving Crypto Growth Through Global Partnerships

El Salvador’s push to entrench itself as a crypto leader extends beyond new banking laws. President Nayib Bukele has been forging international partnerships, especially with countries sharing the same appetite for crypto-assets.

El Salvador has recently cooperated with Pakistan to jointly develop national strategies for Bitcoin adoption and energy policy aimed at supporting crypto mining.

Pakistani Minister Bilal Bin Saqib, received by Bukele explained:

"Cooperation is based on how emerging economies, both under IMF programs, can leverage technology and other financial instruments for national growth."

Similarly, in late July, the Central Bank of Bolivia signed a memorandum of understanding with CNAD to promote cryptocurrency adoption as an alternative to conventional fiat currencies.

The agreement comes amid Bolivia’s ongoing currency crisis, where a shortage of U.S. dollars has made cross-border trade and domestic transactions more challenging.

This environment has led to an uptick in the use of stablecoins, particularly dollar-pegged assets, as a practical alternative, according to Tether CEO Paolo Ardoino.

With institutional and international momentum building, El Salvador continues to solidify its reputation as a pioneering jurisdiction for Bitcoin and digital asset innovation in Latin America.