El Salvador Launches First Bitcoin Banks: Revolutionizing Financial Systems?

In a groundbreaking move, El Salvador is set to become the first nation to launch Bitcoin-centric banks. This initiative, announced by the National Bitcoin Office on August 8, 2025, signifies a significant step towards integrating cryptocurrency into traditional finance. The aim of these new banks is to enhance financial services through Bitcoin-specific offerings such as deposits, lending, and payments. While El Salvador’s move could boost Bitcoin liquidity and attract international investment, the International Monetary Fund (IMF) has expressed concerns regarding regulatory uncertainty and sustainability.