If you consider the state of crypto around the world, it becomes clear that not all countries treat crypto the same way. There’s China which has outright banned crypto and continues to crack down on the industry. There are also countries where crypto use is quite common. As Michael Graw explains, consumers in such countries can easily turn to a crypto casino to spend their tokens. In some cases, they can even use an anonymous casino. 

Perhaps the country most enthusiastic about crypto use is El Salvador, which made history as the first country to accept crypto as legal tender. Now, its government is doubling down on its efforts by planning to incorporate crypto in its investment banking sector. 

Crypto For Investment Banking

The government of El Salvador is currently pursuing the creation of a private investment bank. Should it go through, this bank will allow customers to access loans, make deposits, and explore a myriad of financial instruments. Notably, the bank will accept both US dollars and Bitcoin from customers. 

“As part of our economic plan for El Salvador, we propose a BPI, Bank for Private Investment, where we can diversify the financing options offered to potential investors in Dollars and #Bitcoin,” a tweet from Milena Mayorga, the ambassador from El Salvador to the United States said.

A few other details about this proposed bank have been revealed, such as a $50 million minimum capital requirement and the ability to have foreign stakeholders. Interestingly, the bank will only be able to offer its services to a class of people referred to as ‘sophisticated investors’. These are people who are experienced in investing, have the ability to assess the risks incurred, and have assets with a value of $250,000 or $500,000 readily available for investment. 

It will also have fewer restrictions on offering credit to individuals and engaging with foreign entities. These are restrictions that currently apply to traditional banks. 

Not only would this investment bank offer such services but it will also offer a framework for other investment banks in the country to follow. These banks will thus be able to apply for licenses to provide digital asset-related services, further expanding the use of Bitcoin in the country.

The Growing Appetite For Crypto Investments 

It is interesting that this development is coming at this time. Globally, the appetite for crypto investments has reached a fever pitch. After years of trying, we finally have both a spot Bitcoin and Ether ETF and the former has even seen the token reaching a new all-time price high. 

The market is more receptive than ever before to digital assets so this investment bank is pegged to be a success. It also speaks to the commitment that El Salvador has towards Bitcoin as even though the token is already legal tender, it is finding even more ways of embedding it into public life. Should this resolution be approved and the bank established, other countries might follow suit.