San Salvador, El Salvador — In a significant policy shift three years after adopting Bitcoin as legal tender, El Salvador has introduced a new law targeting high-net-worth and institutional investors. The recent developments reflect an effort to reshape the cryptocurrency landscape in the country, allowing only a select group of investors to access digital asset services.
The Legislative Assembly’s newly enacted Investment Banking Law enables licensed financial institutions with a minimum capital of $50 million to offer services related to Bitcoin and other digital assets. However, entry into this market will be limited strictly to “sophisticated investors,” defined as individuals or entities possessing at least $250,000 in liquid funds and the requisite financial expertise.
This move aims to attract international private capital and position El Salvador as a regional financial hub, according to lawmaker Dania González. She emphasized that this legislative reform will facilitate the presence of funds and affluent investors in the country, enhancing its reputation as a specialized center for digital finance.
The new legislation coincides with President Nayib Bukele’s steady consolidation of power. Earlier this month, lawmakers approved constitutional amendments that extend presidential terms from five to six years while eliminating term limits. Such changes potentially enable Bukele, a vocal supporter of Bitcoin, to maintain his presidency for an extended period.
Bukele’s administration continues to update the nation’s Bitcoin portfolio, even as public purchases are paused under a $1.4 billion loan agreement with the International Monetary Fund (IMF). In its latest assessment in July, the IMF noted that El Salvador is adhering to the requirement to avoid accumulating additional Bitcoin in the public sector.
Despite this, blockchain data from Arkham Intelligence indicates that the government’s Bitcoin holdings have surged to approximately 6,264 coins, valued around $739 million, an increase from 6,160 in April. Analysts suggest that this uptick may involve transfers between wallets rather than new acquisitions since the IMF agreement took effect last December.
As the landscape for cryptocurrency evolves in El Salvador, this pivot towards high-net-worth investors marks a notable shift in policy. The implications of these changes on the broader economy and potential financial stability remain to be seen as the nation navigates its unique position in the volatile crypto market.
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