El Salvador’s Central Bank opened the door for banks to develop their own wallets. The organization published the “Guidelines for the Authorization and Operation of Digital Wallet Platforms for Bitcoin and Dollars.” As expected, they require full KYC and AML procedures. However, it also contains other requirements and measures that raise concerns and paint a bleak picture.
First things first, in the intro they summarize the document as to contain:
“The applicable provisions for the authorization of the operation of the Wallet technology platform Digital of Bitcoin and Dollars, and their Administrators, in the national territory, as to the Bitcoin Law.”
In the first few sections, they ask for a description of everything the banks are planning to do. From technology to marketing, to how they’ll keep the information safe. In the last few sections, they promise “to respond to the request of authorization to operate a digital wallet platform for bitcoin and dollars.”