El Salvador signalled a new phase of its cryptocurrency strategy on 8 August when the government’s Bitcoin Office declared that “Bitcoin banks are coming,” outlining plans to license the world’s first banking institutions dedicated to the digital asset. The initiative builds on President Nayib Bukele’s 2024 draft bill for a Bank for Private Investment, which would allow lenders to operate in both bitcoin and U.S. dollars under lighter regulatory requirements. The proposal, still before the congressional Technology, Tourism and Investment Commission, sets a minimum share capital of US$50 million and permits the banks to register as digital-asset managers and bitcoin service providers. Officials argue that bitcoin-only banks could widen access to finance in a nation where roughly 70 percent of adults lack traditional accounts and bolster investment flows to the Central American country, which recognised bitcoin as legal tender in 2021. Government data show El Salvador holds about 6,262 BTC, valued at roughly US$730 million at current prices. The plan faces external scrutiny. The International Monetary Fund, which extended a US$1.4 billion credit line to San Salvador, has repeatedly warned of risks tied to bitcoin’s volatility and consumer protection. The IMF says the government agreed to halt fresh bitcoin purchases, while local officials contend recent wallet activity reflects internal transfers. Further legislative debate is expected before the banking licences can be issued.