The newly approved Investment Bank Law aims to turn El Salvador into a fintech hub in Latin America, including bitcoin and crypto assets as a relevant part of this future. The law, passed by the National Assembly on August 7, recognizes investment banks as different structures compared to standard banks and allows them to offer more tools, like bitcoin and crypto assets, to entice “sophisticated investors.”

These institutions, which will need to have a capital of at least $50 million, will cater to this kind of investor, who will have to be certified as having financial market knowledge and possessing at least $250,000 to operate.

The new investment banks will accommodate several use cases, encompassing fundraising processes, offering credit and financing opportunities, organizing foreign exchange operations, and establishing guarantees, among other complementary services.

The law states:

Investment banking entities may apply to the competent authorities for authorization to carry out activities as digital asset service providers, digital asset issuers, and bitcoin service providers; always directed exclusively at sophisticated investors.

This hints at the issuance of tokenized bonds or other instruments that could expedite fundraising and asset distribution processes, operations that were limited to traditional institutions before. For effectively performing these functions, investment banks will have the opportunity to rely on third parties to manage digital asset custody and operations.

Dania González, a representative from Bukele’s Nuevas Ideas (New Ideas) party, explained that this will attract large capital to come to El Salvador, offering regulated operations with bitcoin, stablecoins, gold, and tokenized bonds. It will “help businesses, governments, and other organizations secure funding to finance large projects, such as building public infrastructure, launching new products, or expanding into other countries,” she added.

Read more: Bolivia and El Salvador Sign Digital Assets Cooperation Agreement

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。