El Salvador's President Nayib Bukele, a strong advocate for Bitcoin, is proposing the creation of a "Bank for Private Investment" to cater to Bitcoin and other foreign investors. This banking prospect, if approved, will offer a wider range of financial services and fewer restrictions to crypto and dollar investors.

The proposal, announced by Salvadoran Ambassador to the United States Milena Mayorga on June 14, aims to establish a Bank for Private Investment (BPI) that will provide diverse financing options in both dollars and Bitcoin. Max Keiser, a senior Bitcoin advisor to Bukele, has expressed his support for the plan, citing Ark Invest CEO Cathie Wood's prediction that El Salvador's GDP could increase tenfold in the next five years.

The proposed BPI will not face the same strict regulations as traditional banks, including fewer restrictions on engaging with overseas banks or finance companies linked to shareholders. Loan restrictions will also be eliminated, allowing more flexibility in granting credit and assuming risks. To establish a BPI, a minimum share capital of $50 million and at least two shareholders are required, who can be foreigners.

The new banks can operate in any legal tender, including the U.S. Dollar and Bitcoin, and can seek approval to become digital asset and Bitcoin service providers. El Salvador's Minister of Economy, María Luisa Hayem, presented the reform to the Technology, Tourism, and Investment Commission under Bukele's direction. However, it has not yet been approved, and the legislators have not called officials to consult on the project's objectives nor put it to a vote in the Commission.

If approved, these private investment banks could significantly boost El Salvador's economy and further solidify its position as a Bitcoin-friendly nation.