Three years after legalizing Bitcoin as a means to fold retail users into a crypto ecosystem, El Salvador is creating separate lanes for high net worth and institutional investors.
The Legislative Assembly's newly approved investment banking law allows licensing institutions with at least $50 million in capital to provide Bitcoin and other digital asset services.
But not everyone goes through the door.
Access will be limited to so-called “complex investors” (people with at least $250,000 in free funding and recognized financial knowledge).
Investment banks that meet the threshold will be authorized to issue bonds, arrange public-private partnerships and provide or issue digital assets, including Bitcoin.
Lawmaker Dania González said the goal is to “attract international private capital” and allow “funded and high net worth actors to establish or use our entities as regional platforms in the country.”
This shift happened as President Nayib Bukele consolidated power at home.
Earlier this month, lawmakers approved constitutional changes, extending the presidential clause from five to six years and eliminating term limits.
It's a move in theory to put a self-proclaimed Bitcoin Evangelical in the office for decades.
The Buckley administration also continues to expand the country's reported bitcoin holdings despite agreeing to suspend public purchases under a $1.4 billion loan transaction with the International Monetary Fund.
In its article 4 consultation in July, the IMF said the country complies with the program's requirements for public sector “non-energy-storing bitcoin”.
However, blockchain data from the Arkham Intelligence Agency shows that the government now controls about 6,264 bitcoins, and currently has a price of about $739 million, up from 6,160 bitcoins in April.
Some analysts believe that the latest increase since the IMF agreement was signed in December may reflect coins purchased between wallets rather than freshly purchased.
Kyle Baird is the weekend editor for DL News. Is there a tip? Send an email to kbaird@dlnews.com.