El Salvador’s New Law Permits Bitcoin in Investment Banks

El Salvador’s Digital Assets Commission, led by Juan Carlos Reyes, announced a law allowing investment banks to hold digital assets like Bitcoin, aiming to attract foreign investment.

This law’s impact is debated, with potential institutional gains but skepticism on benefits for the general public.

Public Impact and Institutional Criticism

Critics argue that existing policies primarily serve institutional interests over the general public. While the law strives to enhance financial innovation, concerns about benefits being skewed towards institutions persist. Government officials aim to increase global interest, but the absence of detailed plans raises questions about broad societal benefits.

Critics argue that existing policies primarily serve institutional interests over the general public. While the law strives to enhance financial innovation, concerns about benefits being skewed towards institutions persist. Government officials aim to increase global interest, but the absence of detailed plans raises questions about broad societal benefits.

No official statements as of August 10, 2025.” – Juan Carlos Reyes, Chairman, CNAD

Historical Context, Price Data, and Expert Insights

Did you know? In 2021, El Salvador pioneered Bitcoin as legal tender, setting a foundation for current financial reforms. These actions resulted in striking short-term BTC volume surges, though long-term retail impacts remained underwhelming.

Bitcoin (BTC) maintains a market dominance of 58.99%. Its current price is $116,580.18, with a market cap of 2.32 trillion USD. Recent activity reports a 24-hour trade volume of 53.9 billion USD and circulation at 19,904,184 BTC. MarketCap indicates a 3.85% gain over the past week and an 11.46% gain in the preceding 90 days (Source: CoinMarketCap).

Insights from Coincu research emphasize that regulatory changes could likely reshape investment landscapes, particularly as they echo El Salvador’s trend of prioritizing Bitcoin. Historical data hints at increased volatility affecting institutional resources, though widespread public advantages remain unclear despite potential technological advancements.