Regulated BitcoinBTCInvestment banks will soon be coming to El Salvador after the approval on Thursday of El Salvador’s Investment Banking Law. This law classifies investment banking under different regulation than commercial banks.
Now, investment banks are allowed to store BTC on their balance sheets as well as other digital currencies and provide crypto services. “sophisticated” Juan Carlos Reyes is the president of El Salvador’s Commission of Digital Assets, (CNAD), a government-regulated crypto regulator, and he told Cointelegraph that investors would be the equivalent of accredited US investors. He also added:
“The new Investment Banking Law allows private investment banks to operate in legal tender and foreign currencies for ‘Sophisticated Investors’ and to engage in digital assets like Bitcoin with a Digital Asset Service Provider (PSAD) license. With a PSAD license, a bank could choose to operate entirely as a Bitcoin bank.”
Advocates for the new law say that it encourages foreign direct investment and places El Salvador as a financial hub. say.
The institutional investors are a key driver for the growth of El Salvador’s crypto adoptionCentral America’s pro-crypto environment attracts financial companies as well as crypto firms.
Critics say the BTC policy and adoption is not in line with the regulations of the country. not helping the average person The main beneficiaries are the government and big businesses.
Related: El Salvador hasn’t bought Bitcoin since signing loan deal, IMF says
El Salvador forges international partnerships to drive crypto growth
President of El Salvador, Nayib Bukele, met with Bilal Bin SaqibThe Pakistani state minister for cryptography and blockchain will share his strategies to encourage nation-state level Bitcoin adoption, and to promote crypto mining through energy policy.
“The cooperation is essentially based on how emerging economies that are both under the IMF program can leverage technology and other financial instruments for national growth,” Bin Saqib told Cointelegraph in an interview.
The central bank of Bolivia published its July 30th report. signed a memorandum of understanding Together with CNAD we are promoting the use of cryptocurrencies to replace traditional fiat money.
You can also find out more about the following: agreement The announcement came during a currency crises in Bolivia where US Dollars are hard to obtain and scarce, making it difficult for international trade.
This has led to the growing use of US-dollar-denominated stablecoins as a medium of exchange, according Tether’s CEO Paolo Ardoino.
Magazine: El Salvador’s national Bitcoin chief has been orange-pilling Argentina
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Source: cointelegraph.com
