Overview
Costa Rica’s largest commercial bank, Banco Nacional (BN), is making strides in the cryptocurrency space by introducing a Bitcoin exchange-traded fund (ETF) through its investment management arm, BN Fondos. This development represents a historic first for Costa Ricans, granting them access to crypto investment products via traditional banking.
Key Points:
- This initiative comes amid a backdrop of no formal cryptocurrency legislation in Costa Rica.
- The bank also plans to launch an S&P 500 ETF.
- Minimum investment amounts for these funds will be set at $100, and transactions will be denominated in U.S. dollars.
“Costa Rican regulation doesn’t permit investments in things that aren’t investment vehicles, and bitcoin isn’t considered an investment vehicle from a regulatory perspective, but the ETF is.”
(Translation: “La regulación costarricense no permite inversiones en cosas que no son vehículos de inversión, y el bitcoin no se considera un vehículo de inversión desde la perspectiva regulatoria, pero el ETF lo es.”)
With over 2.1 million customers, Banco Nacional serves a significant portion of the Costa Rican population, enhancing the accessibility of crypto investments for many.
Currently, the country allows cryptocurrency trading and ownership ‘because no law prohibits it’, which reflects an emergent attitude towards digital currencies. A proposed Crypto Asset Market Law, which intended to formalize the use of cryptocurrencies for everyday transactions, remains stalled in the legislative process.
