El Salvador's government has presented a reform proposal to establish a private investment bank. According to Milena Mayorga, El Salvador’s Ambassador to the US, the reform aims to enable the bank to operate with both Bitcoin and the US dollar. This would allow the bank to accept deposits, issue loans, and potentially offer other financial services using these currencies.

Furthermore, the reform seeks to permit private banks to apply for authorization to provide digital asset and Bitcoin services, as reported by local media. The overarching goal of this reform is to create a legal framework for El Salvador’s private investment bank, facilitating the flow of financial resources into businesses and government projects. Key provisions include a minimum capital requirement of $50 million and the possibility for foreign ownership.

The reform proposal, currently under review by the Legislative Assembly, also introduces criteria for "sophisticated investors" who can invest in and borrow from the bank, provided they meet specific financial criteria and risk assessment standards.

El Salvador, under President Nayib Bukele's leadership, has been a pioneer in Bitcoin adoption, becoming the first country to adopt it as legal tender in September 2021. The country has also ventured into Bitcoin mining using geothermal energy, reflecting its commitment to expanding Bitcoin's role in its economy.