In a recent development, the Legislative Assembly of El Salvador has reportedly passed a migration law allowing expedited citizenship for foreigners contributing Bitcoin (BTC) donations to government social and economic development programs.
Foreign Investors Offered Citizenship in El Salvador for Bitcoin Participation
The reform, backed by Nayib Bukele’s New Ideas party, was approved on December 21, as reported by Reuters, and is expected to come into effect in the coming days.
Nayib Bukele, El Salvador’s current leader, temporarily stepped down to focus on the presidential campaign for the upcoming election on February 4, 2024. Bukele played a crucial role in El Salvador adopting Bitcoin as legal tender in September 2021.
The legislative reform highlights the “vital interest” of the president’s development initiatives, specifically acknowledging “altruistic foreigners interested in supporting the economic, social, and cultural development of El Salvador… by donating Bitcoin.”
It’s noteworthy that the law does not specify any minimum requirement for the “donation.” At the current press time, Bitcoin is trading at $43,692 levels.
While the Salvadoran government has not officially announced the new law, the National Bitcoin Office (ONBTC) has shared various posts on X (formerly Twitter) discussing the development. The ONBTC operates as a dedicated administrative unit overseeing all Bitcoin and cryptocurrency initiatives across the country.
The Freedom Visa Program of El Salvador
The development comes about two weeks after El Salvador introduced the Bitcoin Freedom Visa, allowing foreigners to secure the visa by investing $1 million in BTC or Tether (USDT) in the Central American nation.
Obtaining citizenship in El Salvador comes with a significantly higher price tag compared to neighboring Caribbean countries, starting at $100,000. If all slots are filled, this initiative has the potential to generate $1 billion for El Salvador, resembling the successful citizenship-by-investment program in Vanuatu, which yields millions in annual revenue.
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