El Salvador has enacted a new Investment Bank Law, passed on August 7, 2025, allowing licensed investment banks to operate exclusively as Bitcoin banks for accredited investors. These banks can hold Bitcoin on their balance sheets and offer financial instruments linked to digital assets, distinguishing them from traditional commercial banks. The law requires a minimum capital of $50 million and a liquidity threshold of $250,000 for banks to qualify. This move aims to attract private international capital and diversify the country's financial system, positioning El Salvador as a fintech hub in Latin America. As of August 13, 2025, El Salvador's Bitcoin holdings have surpassed $750 million, with 6,267 BTC in its portfolio. The country continues to expand its role in institutional Bitcoin adoption, signaling a shift from retail to professional investment in digital assets.