In a groundbreaking move, El Salvador, the pioneer in accepting bitcoin as legal tender, has approved a new law offering citizenship to bitcoin investors. The Central American nation, led by bitcoin advocate Nayib Bukele, passed the El Salvador Citizenship legislation just two weeks after unveiling the Bitcoin Freedom Visa, a program aimed at attracting foreigners to relocate to the country.
As reported by Reuters on Thursday, the Legislative Assembly of El Salvador has now officially endorsed the law. Now, foreigners who make a bitcoin “donation” to the country are eligible to receive expedited citizenship. This bold initiative underscores the country’s commitment to embracing the Bitcoin ecosystem.
El Salvador Citizenship: New Bitcoin ‘Donation’ Law
The law, set to be implemented in the coming days, emphasizes the “vital interest” of the president’s development projects and targets “altruistic foreigners interested in supporting the economic, social, and cultural development of El Salvador by donating bitcoin.”
Interestingly, there is no minimum “donation” that a foreigner can make to gain access to the citizenship of El Salvador. The reform stipulates that eligible individuals would be exempt from the standard naturalization requirement of five years of permanent residence for those originating from a non-Spanish-speaking country. Alternatively, individuals with a Salvadoran spouse would only need two years to complete the naturalization process.
Foreigners have already begun relocating to El Salvador, primarily to beach communities. The government is concurrently working with the International Monetary Fund (IMF) on a new financing program aimed at accelerating the nation’s economic growth.
However, the IMF has always been against Bukele’s decision to adopt bitcoin as legal tender, citing legal risks, fiscal fragility, and the speculative nature of digital asset markets. The organization urges a reconsideration of plans to expand government exposure to bitcoin.
Nayib Bukele’s Re-election
In the midst of these developments, Nayib Bukele, El Salvador’s pro-Bitcoin president, is gearing up for re-election on February 4. Despite criticism from some quarters, including the IMF, Republican presidential candidate Vivek Ramaswamy has expressed support for Bukele, praising his accomplishments in the Central American nation.
He stated:
“It’s a horrible look because it’s a horrible reality. You know it’s a rough day in America when you can say ‘we have a lot to learn from El Salvador’.”
Ramaswamy’s endorsement, while unconventional, highlights the impact of El Salvador’s bitcoin initiatives.
A recent survey conducted by the Center for Citizen Studies at Francisco Gavidia University indicates overwhelming support for Bukele’s New Ideas party in the upcoming elections, with a staggering 70% rate, while its closest competitor trails with just over 4% of total support.
El Salvador’s bold embrace of Bitcoin continues to shape its political landscape, economic policies, and global perception. The intersection of bitcoin and governance in this Central American nation serves as a unique experiment with potential implications for the broader adoption of digital assets on a global scale.
