In a significant move to enhance its digital financial sector, the President of El Salvador, through the Minister of Economy, Maria Luisa Hayem has unveiled a new legislative proposal aimed at fostering the growth of financial technologies in the country. The bill, titled the “Law for the Promotion of Fintech Entities and Regulation of Digital Financial Services,” seeks to create a robust framework for digital financial products and services.

The proposed law is designed to regulate and encourage the establishment of Fintech entities—both domestic and international—that operate within El Salvador. These entities will leverage financial technologies to deliver innovative digital financial solutions. By integrating Information and Communication Technologies (ICT), they are set to play a pivotal role in the nation’s digital economy.

The bill emphasizes the need for a balanced approach between innovation and regulation. It aims to cultivate a digital financial ecosystem that is inclusive, secure, and reliable. Under the new legislation, the Central Bank of El Salvador will be responsible for crafting detailed technical regulations for Fintech operations, while the Superintendency will oversee adherence to these guidelines.

Additionally, the law stipulates that Fintech entities must be established as corporations with a minimum share capital, which will be reviewed and adjusted biennially. It also promotes key digital financial segments such as digital payment platforms, crowdfunding, and online lending.

This legislative initiative is a key component of the government’s broader strategy to advance its National Digital Agenda, which focuses on fostering innovation and digital transformation across all economic sectors. Through this law, the Salvadoran government aims to create an attractive environment for investment, drive talent development, and bridge the digital divide, thereby supporting the country’s economic growth and financial stability.