From El Salvador: Bitcoin Banking Law Reform

[TomPluz]

More of this El Salvador news here.

The Salvadoran government has presented an initiative to accelerate the inclusion of Bitcoin and other cryptocurrencies in its investment banking sector. The banking law reform introduced to the National Assembly would allow private investors to constitute banks that can provide services in Bitcoin and stablecoins for sophisticated investors

Bitcoin adoption is set to experience a new boom in El Salvador. The Salvadoran government has introduced an initiative to reform the current banking law by introducing a new kind of bank that can lend bitcoin and crypto services.

The banking bill reform including 14 new articles that define Private Investment Banks (PIB) as “an essential instrument at the international level that promotes economic development and facilitates the channeling of financial resources towards business and government projects.”

If passed, this initiative will allow the creation of these banks that can offer different services, including economic risk management, purchase of financial products, investment management, hedging, and other financial derivatives. These services will support any legal tender in El Salvador, like the U.S. dollar and bitcoin.

This can be another good news coming from El Salvador and will further test how a country that has adopted Bitcoin as a currency will be successful in incorporating it to its banking system. I am sure some can be seeing the possible risks but then again this can be bringing many opportunities to help the economy of El Salvador into the future. Hopefully, if El Salvador can be gaining some good level of success with this move, this can be inspiring many other countries to also adopt the idea and make it fit with their own economic realities. Now, do you think El Salvador is making a very wise decision on this proposed bill if approved or will it just lead to some lackluster move on the part of the government?

[pawel7777]

This is indeed good news, but it will hardly make any impact on the Bitcoin's price.
El Salvador is simply too small and too poor for its private investors to make any real difference, not to mention that a lot of those, who were interested in investing in Bitcoin, have already done so.

Much better news is that El Salvador continues to purchase 1 btc every day.

[TomPluz]

This is indeed good news, but it will hardly make any impact on the Bitcoin's price. El Salvador is simply too small and too poor for its private investors to make any real difference, not to mention that a lot of those, who were interested in investing in Bitcoin, have already done so.

Yes, of course, this move on El Salvador will not be making any positive impact on the price movement of Bitcoin today and even into the future. What is emphasized here is that this is can be a pioneering decision on the part of the government that if successful may encourage other countries to look into the possibilities of adopting the same in their own backyards but if this will just generate so-so results then we can all forget the whole thing. What we are witnessing in El Salvador will one day be considered as innovations otherwise the world will see them as just jokes...I am hoping to see them as the former considering the heavy investment of time and resources El Salvador made on Bitcoin.