News about some kind of BTC bank that will supposedly attract billions of $ investments has been circulating for years, but regardless of whether there is any truth in it, the idea is really stupid and goes against the very idea behind Bitcoin. It's hard for me to understand why people are so fascinated by every piece of news that comes out of that country, but no one cares that Bukele has achieved some very negative things during his term.
It's interesting with people who don't know well about Bitcoin and importance of Bitcoin private keys on securing their bitcoins. However, with people who only have fundamental knowledge about Bitcoin and Bitcoin private keys, they will feel a lot of unnecessary risk with this "Bitcoin Bank".
With Bitcoin private keys, Bitcoin holders already have their own Bitcoin banks and don't need any third-party Bitcoin bank like this one. With non custodial wallets, they have private keys, own Bitcoin banks, and without any engagement of third party Bitcoin banks.
Even the Ledger Recover service is terrible idea so this Bitcoin bank is only a worse idea.