El Salvador’s New Investment Banking Law May Open Doors for Bitcoin Holdings and Institutional Crypto Services

Key Points

1. The Investment Banking Law permits investment banks in El Salvador to hold Bitcoin, which is expected to increase foreign investment.

2. The law primarily benefits institutional investors and large businesses, with critics arguing it may not broadly benefit the general population.

3. El Salvador is forging international partnerships, such as with Pakistan and Bolivia, to promote crypto adoption and mining.

4. The Central Bank of Bolivia signed an agreement to promote cryptocurrency use amid a currency crisis where US dollars are scarce.

5. The law represents a significant shift in El Salvador's financial landscape, though its broader impact on the population remains debated.