El Salvador is set to launch Bitcoin-exclusive banks by the end of 2025, aiming to enhance its financial services and attract global investment, building on its 2021 decision to adopt Bitcoin as legal tender.

These Bitcoin banks will operate under a license as Digital Asset Service Providers (DASP), with the goal of transforming the financial system and positioning El Salvador as a regional digital finance hub.

The government announced that the Bitcoin banks will begin operating by the end of 2025, marking a significant step in its digital transformation efforts.

El Salvador's Bitcoin reserves now exceed 6,300 BTC, valued at over $700 million, reinforcing its commitment to the crypto economy.

Despite concerns from the IMF about crypto volatility and restrictions on Bitcoin purchases, President Nayib Bukele remains dedicated to the Bitcoin strategy to improve financial inclusion for the country's unbanked population.

Officials remain optimistic about Bitcoin's long-term potential, viewing the launch of Bitcoin banks as a key milestone in the nation's digital evolution.

Bitcoin banks will be regulated by the Commission of Digital Assets (CNAD) instead of traditional financial authorities, allowing for more flexible digital asset services.

These banks will target high-net-worth individuals and crypto businesses, requiring a minimum capital of $50 million and clients to hold at least $250,000 in liquid assets.

Services offered will include accepting Bitcoin or tokenized US dollar deposits, crypto loans, digital custody, wallet management, token issuance, and investment services.

El Salvador's broader crypto initiatives include a geothermal Bitcoin mining program and the government-backed Chivo wallet, though public adoption has been slower than expected.