El Salvador offers citizenship to foreign bitcoin investors

El Salvador’s Congress
has approved a migration law granting expedited citizenship to
foreigners who make bitcoin “donations” to government social and
economic development programs.
In a surprise vote late Wednesday evening, the unicameral
legislature passed the reform with support from President Nayib
Bukele’s New Ideas party, which controls Congress. The law is
expected to come into force in the coming days.
Bukele is running for re-election in the Central American
nation’s election, scheduled for Feb. 4.
The reform cites the “vital interest” of the president’s
development projects, highlighting “altruistic foreigners
interested in supporting the economic, social and cultural
development of El Salvador … by donating bitcoin.”
The law does not cite any minimum “donation” requirement.
Bitcoin on Thursday was trading at $43,741.
The reform provides that those who qualify would skip the
normal requirement for the naturalization process of five years
of permanent residence for anyone from a non-Spanish-speaking
country, or two if the person has a Salvadoran spouse.
El Salvador made bitcoin a national currency in 2021,
although its implementation has been slow and its use limited.
Some foreign promoters of the digital currency have moved to
the country, mainly to beach communities.
Bukele’s cash-strapped government is currently working to
reach an agreement with the International Monetary Fund for a
new financing program amid concerns over the country’s slow
economic growth.
The IMF has been vocal about what it sees as risks stemming
from El Salvador’s adoption of bitcoin as legal tender.
Bukele is running for re-election despite the constitution’s
appearing to clearly prohibit consecutive terms.
In 2021, El Salvador’s top court – whose members are
appointed by Congress – ruled that Bukele could stand for
re-election, a decision that drew international condemnation,
including from the United States.