El Salvador has announced in a post on X plans to introduce Bitcoin banks in the Bitcoin country

El Salvador announced today in a post on X that it plans to introduce Bitcoin banking into its economy. The announcement builds on President Nayib Bukele’s Bitcoin-driven economic strategy. The plan remains unclear, and there are no details as of now.

The post declared that ‘Bitcoin Banks are coming to Bitcoin country,’ suggesting that the country may roll out banking institutions specifically for Bitcoin operations. If implemented, this plan could reshape how El Salvadoran citizens access finance.

El Salvador considers Bitcoin-only banking institutions

El Salvador, known for adopting Bitcoin as legal tender, has not yet released details on the regulation frameworks surrounding the announcement of Bitcoin banks. As we wait for further announcements, it remains speculative that the proposed Bitcoin banks can offer deposits, lending, and financial investment instruments in BTC. 

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— The Bitcoin Office (@bitcoinofficesv) August 8, 2025

The announcement builds on Nayib Bukele’s proposal to introduce a Bank for Private Investment (BPI) last year. Milena Mayorga, El Salvador’s Ambassador to the U.S., explained the BPI proposal as a model allowing banks in El Salvador to operate under minimal regulations compared to traditional banking. She added that the banks will have fewer restrictions when forming partnerships with international banks and more flexibility on loan amounts.

Bukele’s original plan outlined that BPIs should have a minimum share capital of $50 million and at least two shareholders. The BPIs could register as digital asset managers and BTC service providers. The Technology, Tourism, and Investment Commission is still considering the BPI.  

Max Keiser, Senior Bitcoin advisor to Bukele, shared his thoughts that introducing Bitcoin into the banking sector would boost the country’s GDP. 

Cathie Wood, CEO of Ark Investment, forecasted that El Salvador would experience higher economic growth in the next five years following the plan to adopt the BPI. 

IMF challenges El Salvador’s Bitcoin narrative as it plans to form Bitcoin banks

Some analysts noted that Bitcoin banks could expand financial inclusion in the Bitcoin country with a nearly 70% unbanked population. The analysts revealed that the BPI model could offer an alternate solution to traditional banking.  They have also cited Bitcoin’s volatile nature and skepticism as key concerns over its integration into banking. IMF cautioned against cryptocurrency’s widespread adoption, noting crypto’s unstable nature and consumer protection as key concerns. 

El Salvador has been advancing its Bitcoin strategies since it adopted Bitcoin as legal tender in September 2021. The country launched a state-backed Chivo wallet that invested in Bitcoin reserves and bonds. It also introduced a geothermal-powered BTC mining project.  

Following the announcement today, it’s still unclear and speculative whether the plan will follow the BPI or adopt a new framework. The government of El Salvador is expected to deliver more details later on the plan. However, the message is clear now that the country is committed to doubling down on Bitcoin adoption. 

An IMF report revealed that El Salvador has maintained its promise not to buy more BTC under the $1.4 billion credit agreement. The IMF said the recent Bitcoin activity in the country’s wallet was a consolidation from the country’s different wallets and not a new purchase. The report counters the country’s remarks that those transfers were fresh buys, showing a questionable communication strategy from the state. 

El Salvador’s holdings touched a high of $767 million, while BTC hit an all-time high of 123k last month. 

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