El Salvador is set to welcome Bitcoin investment banks following the recent approval of the Investment Banking Law. This new legislation allows investment banks, classified under different regulations than commercial banks, to hold Bitcoin (BTC) and other digital assets. These banks will primarily focus on services for sophisticated investors, similar to accredited investors in the U.S. Juan Carlos Reyes, president of El Salvador's Commission of Digital Assets, explained that the law permits private investment banks to operate with legal tender and foreign currencies and engage in digital assets with a Digital Asset Service Provider license. The law aims to attract foreign investment, positioning El Salvador as a financial hub in the region, appealing to institutional investors who drive demand for Bitcoin and crypto-related services. Critics, however, express concerns that the Bitcoin adoption strategy benefits primarily the government and large businesses, rather than the general population.

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