A. M. 
The Technology, Tourism and Investment Commission of El Salvador has begun the analysis of a draft Law for the Promotion of Entities and Regulation of Digital Financial Services. This initiative seeks to establish a regulatory framework that promotes business models based on financial technologies (Fintech) in the country, facilitating the development of new digital financial products and services.
The objective of the proposal is to attract both domestic and foreign companies interested in operating in El Salvador, providing them with a safe and structured environment for the development of digital financial services. In its next session, parliamentarians will receive Douglas Rodríguez, president of the Banco Central de Reserva (BCR), who will present the scope and potential benefits of this legislation for the salvadoran economy.
According to the project, the National Digital Agenda seeks to integrate all stakeholders involved in the country’s growth through innovation and the use of Information and Communication Technologies (ICT). This includes boosting entrepreneurship and promoting jobs through a specific legal framework that promotes digital financial services, a sector with great potential in the region.
The regulation would apply to legal entities that develop business models based on financial technologies, excluding those already regulated by existing laws such as the Bitcoin Law and the Law of Issuance of Digital Assets. The BCR would act as a regulatory and oversight entity to supervise Fintech companies, ensuring that risks are minimized in the national financial market.
In addition, the Superintendencia del Sistema Financiero would ensure the correct application of the law, guaranteeing compliance with the requirements necessary to operate within the legal framework. If approved, the regulation would allow the development of services such as national and international transfers, digital payments and virtual point-of-sale solutions, facilitating transactions in a secure manner.
The proposal also contemplates the creation of the Financial Innovation Council, an inter-institutional body that would promote a robust and sustainable digital financial ecosystem. This council would coordinate objectives and policies that promote financial inclusion and innovation in digital financial services.
Another highlight is the creation of an Office of Financial Innovation (OIF), made up of technicians from the Central Bank and the Superintendency, which would act as an administrative and technical support body. This office would be key in the development of new Fintech models and would be responsible for promoting access to and use of digital financial services in the country.
With these initiatives, El Salvador seeks to position itself as a leading country in the region in the adoption and regulation of financial technologies, thus promoting an environment conducive to innovation and economic growth through Fintech and other business models based on financial technology.
