PANews reported on August 10 that Juan Carlos Reyes, chairman of the El Salvador Digital Asset Commission (CNAD), the Salvadoran government’s cryptocurrency regulator, said that investment banks are now allowed to hold Bitcoin and other digital assets on their balance sheets and provide cryptocurrency services to “sophisticated” investors (equivalent to accredited investors in the United States).

“The new Investment Banking Act allows private investment banks to provide services to ‘sophisticated investors’ in both fiat and foreign currencies and to hold a Digital Asset Service Provider (PSAD) license to engage in digital asset business such as Bitcoin. Banks holding PSAD licenses can choose to operate entirely as Bitcoin banks.”

Supporters of the new law say it encourages foreign investment in El Salvador and positions it as an emerging financial hub.

Earlier news reported that El Salvador plans to establish the world's first Bitcoin bank.