El Salvador’s Legislative Assembly has passed a migration law allowing expedited citizenship for foreigners making Bitcoin donations to government programs.
The law emphasizes altruistic support for the country’s development initiatives and is expected to take effect soon.
In a recent legislative move, the Legislative Assembly of El Salvador has reportedly passed a migration law allowing foreigners to obtain expedited citizenship by making Bitcoin (BTC) donations to government social and economic development programs. The reform, supported by the New Ideas party led by Nayib Bukele, was approved on December 21 and is expected to come into effect in the coming days.
Nayib Bukele, the current leader of El Salvador, has temporarily stepped down from his position to focus on the upcoming presidential campaign scheduled for February 4, 2024. Bukele played a pivotal role in El Salvador’s historic adoption of Bitcoin as a legal tender in September 2021.
The legislative reform underscores the “vital interest” of the president’s development initiatives, particularly recognizing “altruistic foreigners interested in supporting the economic, social, and cultural development of El Salvador… by donating Bitcoin.”
It’s important to note that the law does not specify a minimum requirement for the Bitcoin “donation.” As of the latest update, 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 information on social media platforms, discussing the development. The ONBTC serves as a dedicated administrative unit overseeing all Bitcoin and cryptocurrency initiatives within the country.
El Salvador Continues Crypto Innovations with Bitcoin Citizenship and ETF Plans
In a series of bold moves within the cryptocurrency space, El Salvador has recently introduced a migration law allowing expedited citizenship for foreigners contributing Bitcoin (BTC) donations to government development programs. This comes on the heels of the country’s announcement of the Bitcoin Freedom Visa, permitting foreigners to obtain the visa by investing $1 million in BTC or Tether (USDT) within El Salvador.
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Acquiring citizenship through this initiative comes at a comparatively higher cost, starting at $100,000, distinguishing it from similar programs in neighboring Caribbean countries. If all slots are filled, the potential revenue generated for El Salvador could reach $1 billion, mirroring the success of citizenship-by-investment programs in countries like Vanuatu.
These initiatives align with El Salvador’s efforts to address financial challenges, as the government actively engages in negotiations with the International Monetary Fund (IMF) for a new financing program. Economic concerns, particularly regarding the country’s sluggish growth, have intensified discussions with the IMF, which has expressed reservations about the risks associated with El Salvador’s adoption of Bitcoin as legal tender.
In another crypto-centric move, El Salvador is reportedly exploring launching its own Bitcoin exchange-traded funds (ETFs). According to Max Keiser, El Salvador is contemplating the introduction of a Bitcoin ETF within its borders, distinguishing it from existing ETF applications primarily involving fiat currencies. This potential ETF is envisioned to enable both Bitcoin deposits and withdrawals, providing a more comprehensive avenue for cryptocurrency investments within the country.
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