The proposal creates a chapter in the Banking Law to regulate the creation and operation of private investment banks, as they can enhance the economic development of the country.

The purpose is to promote economic growth, strengthen the financial system and foster the country's competitiveness in the international arena.

The proposal indicates that, to establish such an institution, they must be incorporated as variable capital corporations and must have at least two shareholders with a minimum capital of US$50 million. The services that these banks will provide may be provided in the country's legal tender. Therefore, they will be able to use dollars or bitcoin.

In addition, it was indicated that to be a client of these banks it will be required to be recognized as a sophisticated investor, for which conditions must be met, such as being aware of the risks of investments or having a minimum capital of US$250 thousand.

It should be noted that the current banking regulations date back to 1999 and require an update to allow El Salvador to develop a regulatory framework that promotes, facilitates and diversifies the establishment and operation of private investment banking, to increase the country's competitiveness.

Translated by: A.M