TechFlow news, on August 10, according to Finance Feeds, El Salvador recently passed the "Investment Banking Law," paving the way for regulated investment banks to hold Bitcoin and provide cryptocurrency services to institutional clients, marking the country's latest move to solidify its position as a global digital asset hub.
According to Juan Carlos Reyes, President of El Salvador's National Committee for Digital Assets (CNAD), the law establishes a separate regulatory framework for investment banks distinct from commercial lenders. The new regulations allow licensed institutions to operate with both local and foreign currencies, and upon obtaining a Digital Asset Service Provider (PSAD) license, they can operate fully as Bitcoin-focused banks.
Supporters argue that the law could attract foreign capital and further position El Salvador as a center for financial innovation.
