El Salvador’s Parliament has approved a recent legislation that allows foreign nationals to acquire citizenship through investments in Bitcoin, as reported by Reuters.
On December 21, the single-chamber legislature of El Salvador, largely controlled by President Nayib Bukele’s New Ideas party, endorsed the new citizenship law. The vote, held during a late-night session, received substantial backing, clearing the path for the prompt implementation of the policy.
New Citizenship Law for Bitcoin Investors
The recently sanctioned legislation expedites the naturalization of foreign investors who contribute Bitcoin “donations” to El Salvador’s initiatives for social and economic advancement. This strategy forms part of a comprehensive approach aimed at attracting international investments and fortifying the country’s economy. Notably, the law excludes a stipulated minimum donation amount, ensuring accessibility to a diverse range of investors.
Moreover, the legislation streamlines the naturalization procedure for investors who do not speak Spanish, eliminating the usual five-year residency prerequisite. Instead, those investing in Bitcoin can attain citizenship at an accelerated pace, aligning with El Salvador’s groundbreaking adoption of Bitcoin as legal tender in 2021.
The reform underscores the importance of President Bukele’s developmental agendas, explicitly acknowledging the role of “altruistic foreigners interested in supporting the economic, social, and cultural development of El Salvador… by donating bitcoin.”
El Salvador Sees Financial Gains from Bitcoin Investments
On December 4, President Bukele declared the success of El Salvador’s Bitcoin initiative, revealing a profit of $3.6 million as Bitcoin’s value surged beyond the country’s average purchase price. This marked a significant turnaround from previously reported paper losses.
In a post, President Bukele joyfully announced, “Our BTC investments are in the black!”
Despite the current profits, Bukele made it clear that El Salvador has no intention of liquidating its Bitcoin holdings. Stressing a long-term approach, he stated, “We have no intention of selling… that has never been our objective.”
The decision to embrace Bitcoin as legal tender in 2021 reflects Bukele’s vision of utilizing cryptocurrency for economic growth and autonomy. By integrating Bitcoin into the country’s economy, Bukele envisions a future in which El Salvador, and potentially other South American nations, can reduce their dependence on traditional currencies like the U.S. dollar, which are susceptible to inflation.
