El Salvador is signaling the next important step in adopting Bitcoin by planning to establish a dedicated Bitcoin bank.
Bitcoin office in the country posted on X on August 8th, declaration:
“Bitcoin banks are coming to Bitcoin country.”
No further details have been made available, but the announcement suggests plans to integrate Bitcoin-based banks into the country’s financial system.
This includes new laws that support banks operating primarily on Bitcoin, offering services such as deposits, lending and payments derived from flagship digital assets.
Max Keizer, Bitcoin adviser to President Nayib Bukele, highlighted the ambitions behind the move, describing Bitcoin’s growth in El Salvador as part of a global shift to challenge the traditional banking system “unstopping” and traditional banking system.
Keizer argued that Bitcoin absorbed the global $400 trillion preservation value and reduced central bank impact.
Bitcoin drive in El Salvador
El Salvador made history by becoming the first country to adopt Bitcoin as its fiat currency in 2021.
Since then, it has established itself as one of the world’s most crypto-friendly jurisdictions, captivating global companies like Stablecoin Issuer Tether, which has established its headquarters in the country.
Government data shows that El Salvador holds 6,262.18 BTC, worth more than $730 million at its current price. This accumulation has reinforced its image as a global hub for Bitcoin innovation.
However, El Salvador’s Bitcoin policy faces severe criticism from global financial institutions.
For many years, the International Monetary Fund (IMF) has consistently warned of the potential financial risks that come with the Central American country’s Bitcoin embrace.
Additionally, Financial Watchdog recently claimed that the country had halted its acquisition of Bitcoin in the second half of 2024. According to the IMF, the recent purchase announcement was an internal transfer rather than a new acquisition.
Despite these criticisms, El Salvador’s Bitcoin-first approach has sparked interest from other countries. Bolivia is reportedly studying the country’s experience as it considers its own Bitcoin initiative.