El Salvador’s new immigration law brings citizenship to an era with Bitcoin – Report

Earn citizenship by donating Bitcoin

El Salvador’s Congress on Wednesday passed an immigration bill that would allow expedited citizenship to foreigners who make Bitcoin “donations” to the country’s social and economic development programs. Reuters reported.

The bill was hastily approved by the unicameral parliament with strong support from President Nayib Bukele’s New Thought party. Enforcement of the bill is expected within the next few days.

Naturalization requirements in El Salvador required five years of residence for non-Spanish speaking foreigners and two years of residence for foreigners married to Salvadoran citizens. The new system allows for the avoidance of previous requirements.

According to Reuters, although the bill does not specify specific minimum standards for “donations,” the El Salvadoran government announced earlier this month that it would collaborate with stablecoin issuer Tether, which will donate 1,000 bits per year. It has launched a new citizenship-by-investment program that offers coin investors a residency visa and a path to citizenship in exchange for a $1 million (140 million yen) investment.

El Salvador’s Citizenship by Donation program in the news

Apply for your Freedom Passport today: https://t.co/CBYgFwCm4O

https://t.co/2klkbGUk9v

— Adopting El Salvador (@AdoptingES) December 15, 2023

The program is expensive compared to countries with similar programs, such as Malta and Vanuatu. Additionally, fees can be paid in Bitcoin (BTC) or the stablecoin Tether (USDT).

connection:El Salvador’s President Bukele to step down from office in anticipation of re-election in 2024

President Bukele seeks re-election

This Bitcoin “donation” to socio-economic development programs is intended to bring “significant benefits” to the development projects of President Bukele, who is seeking re-election in the upcoming Central American elections on February 4 next year. Specifically, it targets “altruistic foreign nationals who are willing to support El Salvador’s economic, social, and cultural development,” and aims to achieve this goal through Bitcoin donations.

El Salvador became the first country in the world to recognize Bitcoin as legal tender in 2021, and it is used as a payment method alongside the US dollar. Some foreigners who promote Bitcoin mainly move to beach communities. In November 2022, President Bukele declared that he would “purchase 1 BTC every day,” which attracted global attention.

This month, a Bitcoin-backed bond called Volcano Bond was approved by El Salvador’s Digital Assets Commission (CNAD). Volcano bonds will be issued with approximately 140 billion yen ($1 billion) worth of Bitcoin as collateral to raise funds. These bonds will have a ten-year term and provide investors with an annual yield of 6.5%. The plan is to use these funds to build a “Bitcoin City” that will receive tax breaks and to purchase large amounts of Bitcoin.

connection:El Salvador’s Bitcoin-backed bond “Volcano Bond” receives regulatory approval

President Nayib Bukele, who has been promoting Bitcoin policy, has been given permission to leave office for six months in preparation for the February 4, 2024 elections. He has won the support of the public for his strict crackdown on gangs and is seeking re-election. Meanwhile, the International Monetary Fund (IMF) and other organizations have voiced concerns about the risks of adopting Bitcoin as legal tender.

connection:Bitcoin investment in El Salvador turns positive with unrealized gains of approximately 530 million yen

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