El Salvador Announces Plans to Introduce Bitcoin Banks in the Country

Highlights:

• El Salvador revealed plans on X to create Bitcoin banks within its economy.
• The plan builds on President Bukele’s 2024 proposal for a Bank for Private Investment.
• Experts warn that Bitcoin’s volatility and global skepticism may hinder the banking initiative.

El Salvador announced today on X that it intends to integrate Bitcoin banking into its economy. This announcement, made by the country’s official Bitcoin Office, aligns with President Nayib Bukele’s ongoing Bitcoin-focused economic strategy. Although the plan has been revealed, specific details are not yet available. If this happens, it could change how people in El Salvador use and access financial services. For now, it’s only guesswork, but these banks might let people deposit, borrow, and invest using Bitcoin.

🇸🇻🚀 pic.twitter.com/DEGUKMmhfd

— The Bitcoin Office (@bitcoinofficesv) August 8, 2025

The plan expands on President Nayib Bukele’s proposal from last year to establish a Bank for Private Investment (BPI). El Salvador’s U.S. ambassador, Milena Mayorga, said BPIs would have fewer rules than regular banks, making it easier to work with foreign banks and offer larger loans. Bukele’s proposal stated that BPIs must have a minimum of $50 million in capital and at least two owners. They could also register to manage digital assets and provide Bitcoin services. The Technology, Tourism, and Investment Commission is still reviewing the idea.

Bitcoin’s Role in El Salvador’s Economy and the IMF’s Response

Max Keiser, President Bukele’s senior Bitcoin advisor, said bringing BTC into banking could help grow El Salvador’s economy. “Bitcoin continues its unstoppable vector in El Salvador. Bitcoin is eating all the world’s $400 trillion in stored value while rendering inert all the central banks & their doomed, archaic, 3-letter agency helpers,” Keiser stated.

Cathie Wood, CEO of Ark Investment, predicted the country’s economy will grow faster over the next five years if it adopts the BPI plan. The BPI model could be an alternative to traditional banks, but concerns remain over Bitcoin’s volatility and public skepticism. Keiser and his wife, Stacy Herbert, who runs the Bitcoin Office, have played a big role in pushing El Salvador’s Bitcoin-friendly policies since the country made BTC legal money in 2021.

President Bukele recently met with @CathieDWood and Art Laffer to discuss investment opportunities in El Salvador.

Topics included: Bitcoin and new capital markets; tech and innovation opportunities, including in Artificial Intelligence and Art Laffer's favorite – tax policy! pic.twitter.com/swLMyrU8m2

— The Bitcoin Office (@bitcoinofficesv) May 28, 2024

The start of Bitcoin Banks could be a major step in El Salvador’s goal to become the world’s center for Bitcoin innovation. Analysts say Bitcoin banks could help more people in El Salvador access financial services, as about 70% of the population is unbanked. Since legalizing Bitcoin, El Salvador introduced the government-backed Chivo wallet and invested in Bitcoin reserves and bonds. The country has also launched a geothermal-powered Bitcoin mining initiative.

IMF Says El Salvador Has Not Bought New Bitcoin Since Loan Deal

The International Monetary Fund (IMF) reported last month that El Salvador has not bought any new Bitcoin since signing a loan agreement in December. The IMF claimed recent wallet activity involved only moving funds between wallets. This contradicts the government’s claims of new purchases. El Salvador’s Bitcoin holdings recently hit $767 million, while BTC reached a record $123K last month.

As bitcoin rockets past $120,000, El Salvador's Strategic Bitcoin Reserve soars to yet another new all time USD high:

💰$747,214,660 pic.twitter.com/WIs8XwjCtA

— The Bitcoin Office (@bitcoinofficesv) July 14, 2025

At the time of writing, Bitcoin was trading at $116,824, marking a 2% increase over the past 24 hours. This rise follows two recent executive orders signed by Donald Trump supporting the crypto industry.