El Salvador allows licensed banks to engage in cryptocurrency business through the "Investment Banking Law."

ChainCatcher news, according to Cointelegraph, Juan Carlos Reyes, the chairman of the Salvadoran Digital Assets Commission (CNAD), confirmed that the newly passed Investment Banking Law will allow licensed investment banks to hold digital assets such as Bitcoin and provide cryptocurrency services to qualified investors.

The law explicitly states that investment banks can apply for a Digital Asset Service Provider (PSAD) license and even operate in a pure Bitcoin banking model. The government stated that this move will attract foreign investment and strengthen its position as a financial innovation hub, but critics point out that the existing cryptocurrency policies mainly benefit institutions rather than the general public.