Crypto enterprises in El Salvador are optimistic that a Donald Trump presidency could ease banking resistance to their industry, facilitating operations as the largest global economy moves toward increased crypto integration. This would represent a significant shift from recent times when tougher regulations left many businesses struggling to access traditional banking services.
In recent years, most traditional US banks have largely avoided digital asset companies, citing insufficient regulatory clarity. Crypto businesses have persistently criticized what they see as a deliberate attempt by regulators to exclude them from the conventional financial system, a claim that policymakers dispute.
However, even in El Salvador—the world’s pioneering Bitcoin nation, which enacted its Bitcoin Law in 2021 and has been consistently adding BTC (BTC) to its national reserves—crypto firms assert that they continue to face challenges in accessing traditional banking services, encountering similar obstacles as seen in other countries, despite the government’s pro-crypto orientation.
“The primary issue in the crypto space is bank accessibility,” said Eloísa Cardenas, Chief Innovation Officer at Monetae, a Salvadoran exchange, during an interview with Cointelegraph.
“In El Salvador, there’s legislation in place that’s very pro-crypto, yet banks will not open accounts for you. Even if you are fully regulated and based in El Salvador, local banks fear for their relationship with (US) correspondent banks. It’s absurd.”
Although there have been exceptions, numerous US banks have remained cautious about servicing crypto businesses, concerned about regulatory scrutiny and the high costs associated with risk management. Nonetheless, crypto companies are hopeful that the industry’s fortunes are changing, as US leaders advocate for clearer regulations and strengthened partnerships between traditional finance and the burgeoning digital asset market.
“With Trump’s return, we anticipate some easing in operations within the financial system,” Cadenas stated. “It won’t be as restrictive as in the past.”
Increased banking acceptance is essential in El Salvador
For El Salvador’s crypto ecosystem to flourish, traditional financial institutions must become more accepting, Cadenas emphasized. In 2021, President Nayib Bukele gained international attention by betting on Bitcoin, passing legislation that granted the cryptocurrency legal tender status in a country of six million. Shortly thereafter, the government began acquiring Bitcoin regularly through Treasury investments.
While widespread adoption among Salvadorans has not fully occurred—and the government has recently agreed to abandon mandatory Bitcoin acceptance in negotiations with the International Monetary Fund—Bukele’s ambitious experiment prompted backlash from the global banking community, straining relations with the IMF.
El Salvador’s Bitcoin holdings in USD. Source: Salvadoran Bitcoin Office.
Nevertheless, even the IMF has acknowledged that many feared risks have not materialized. While Bukele’s grand Bitcoin ambitions have been modified in some respects, his government’s Treasury purchases have continued seamlessly—now representing about 15% of El Salvador’s total national reserves, or nearly $600 million.
Are US banks beginning to embrace crypto?
Although El Salvador is considered one of the most crypto-accepting nations worldwide, crypto firms argue that access to traditional banking remains a significant barrier to the ecosystem. However, with the possibility of Trump returning to the White House as a pro-crypto president—and the appointment of a crypto and AI czar—there is growing optimism that the industry is gaining momentum after years of regulatory challenges.
“US bank regulators have unilaterally and undemocratically prevented banks from providing crypto services for several years,” stated Coinbase Chief Policy Officer Faryar Shirzad on February 4 via social media platform X.
“Coinbase is taking a vital step to end the debanking of crypto by urging (US regulators) to clarify that banks can participate in crypto activities and support the crypto community.”
There are indeed early indications of traditional lenders warming up to the sector. At the World Economic Forum in Davos, Morgan Stanley CEO Ted Pick expressed that the bank is committed to collaborating with US regulators, including the Treasury Department, to explore safe ways to offer crypto services.
Bank of America CEO Brian Moynihan shared a similar perspective on January 21, asserting that “If regulations are established that facilitate legitimate business operations, the banking system will embrace it enthusiastically.”
In recent weeks, US policymakers have increasingly focused on the difficulties faced by crypto asset businesses in securing bank accounts, according to a report from Elliptic Global Policy and Research Group, a firm specializing in blockchain analytics.
In the report, the group highlighted,
“The language within the Trump executive order on digital assets is explicitly aimed at steering a change in direction, providing the expectation of an environment where crypto asset firms can gain more accessible financial services from banks.”
This article is intended for general informational purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect the views or opinions of Cointelegraph.
