El Salvador’s President, Nayib Bukele, continues to offer Bitcoin-related initiatives in the Latin American country. This time, the El Salvadoran government has proposed to establish a Bitcoin bank to attract billions in investments from foreign countries.

Bitcoin Bank for Private Investment Broadens Opportunities

Milena Mayorga on X initially announced the development. The Ambassador of El Salvador to the United States broke the news of a “Bank for Private Investment” (BPI), which was later confirmed by Bitcoin Maxi Max Keiser, who is working as a Senior Bitcoin Advisor to Bukele.

The ability to hold Bitcoin investments without the restrictions of overseas banks offers an edge over regular banking systems. Borrowers will be able to collateralize their pristineness without any counterparty risk, which increases the chances of El Salvador’s GDP experiencing a 10-fold growth in five years as estimated by Cathie Wood from Ark Invest.

Bitcoin’s Progress in El Salvador: Better Than Expected?

If Wood’s prediction seems far-fetched, consider that Google recently established its new headquarters in El Salvador’s capital, San Salvador. The headquarters, it is estimated, will have an annual economic impact of $3.4T.

The major breakthrough happened after El Salvador eliminated all taxes on technology businesses, following Dubai’s lead. The substantial tax relief wasn’t unnoticed by Wall Street, as El Salvador’s foreign bonds have piqued the interest of experienced wolves.

Simultaneously, the country began its Volcano Energy Project, striving to become a leading player in the Bitcoin mining industry. In addition, starting in November 2022, El Salvador has started regularly buying one Bitcoin a day. El Salvador’s Bitcoin stash now consists of 5,785 Bitcoins in a publicly trackable cryptocurrency wallet address.

On the Flipside

Aside from economic growth, Nayib Bukele’s presidency is often praised due to El Salvador’s successful crackdown on local gangs.

Due to the elimination of violent crimes and murders, the country has become more attractive to tourists and foreigners, including crypto talent. 
 

Why This Matters

El Salvador pioneered Bitcoin as a legal tender in 2021, and the nation’s transformation has become a hot topic in financial and political circles.

Source : DailyCoin - Jun 18, 2024