El Salvador is again about to write history. Four years after the controversial introduction of the Bitcoin (BTC) Act, the country announces a next, bold step. It is a step that can change the financial landscape and possibly set the tone for the rest of the world.
Bitcoin Banks must boost financial revolution
El Salvador wants to officially start this year with the establishment of full -fledged Bitcoin banks. Stacey Hebert of the National Bitcoin office Detert announced this during the celebration of four years Bitcoin Act. “We expect the first banks to be operational towards the end of the year,” said Hebeert.
The new banks are intended for professional investors, not for average Salvadorans. Nevertheless, policy makers expect a major impact on the economy. The banks may, among other things, take on BTC deposits and offer crypto-supported loans.
These new banks may also offer tokens linked to investment products. With that they respond to the tokenization hype that we also see in America more and more with asset managers and fairs. Tokenization is the digitization of traditional assets, such as real estate, shares or bonds, in the form of tradable cryptotokens on the blockchain.
According to Hebert, the call for alternative financing is great: “In my three years at the Bitcoin Office, the biggest complaint was the current banking system. We are now going to do something about it.” The establishment of these settings is made possible by the Investment Bank Law, which was adopted in August.
New sequel in Bukele’s Bitcoin mission
The plan fits in with President Nayib Bukele’s broader strategy. Under his leadership, El Salvador became the first country in the world to introduce Bitcoin as a legal tender. That status has since been reversed after an agreement with the International Monetary Fund (IMF), an organization that helps countries financially.
In addition, the Midden-American country has been buying a lot of Bitcoin since 2021. El Salvador now owns 6,246 BTC, good for around $ 725 million in the current rate. The profit on that investment rises to nearly 400 million dollars.
In an absolute sense, it remains a modest amount compared to other governments and companies with large BTC reserves. For comparison: the United States possess an estimated 198,000 BTC, mainly from seizures. Yet El Salvador’s position is impressive if you look at the small number of inhabitants (6.4 million).
Source: https://newsbit.nl/bitcoin-banken-op-komst-el-salvador-zet-nieuwe-stap-in-financiele-revolutie/
