Bitcoin Price Prediction: El Salvador’s New Law Fu
Bitcoin Price Prediction: El Salvador’s New Law Fuels Institutional Demand – What’s the BTC Outlook?
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Bitcoin is gaining renewed institutional attention after El Salvador approved its Investment Banking Law, a measure that could transform the nation into a regional crypto hub. The legislation, passed on August 7, classifies investment banks separately from commercial lenders, giving them broader powers to hold Bitcoin and other digital assets on their balance sheets.
Under the new framework, licensed institutions can operate in legal tender, foreign currencies, and digital assets — including BTC — but only with “sophisticated investors,” a category similar to accredited investors in the U.S. These banks will require at least $50 million in capital and will serve clients with market knowledge and a minimum of $250,000 in investable assets.
Juan Carlos Reyes, president of El Salvador’s Commission of Digital Assets, said the law enables banks to operate entirely as Bitcoin-focused entities. This opens the door to tokenized bonds, stablecoin services, and even large-scale project financing through crypto-based instruments.
Government allies believe the law will attract significant foreign capital, while critics argue the benefits will favor big business over everyday citizens.
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