El Salvador’s Congress has approved new migration legislation that promises accelerated citizenship to foreigners in exchange for bitcoin donations for the country’s social and economic development projects.
The reform, approved in a surprise session, is an extension of the pro-bitcoin policies of President Nayib Bukele, whose party, Novas Ideias, has significant control in Congress.
The new law, which is expected to come into effect soon, comes at a crucial time: on the eve of the February 4 presidential elections, in which Bukele wants to stand for re-election.
Bitcoin for Citizenship in El Salvador
The country’s decision to adopt bitcoin as legal tender in 2021 was a bold step, but faced challenges in implementation and adoption. The new legislation emphasizes support for development projects, without specifying a minimum donation amount in bitcoin, which currently trades around $43,800.
In addition to being a strategy to attract foreign investment, the law simplifies the naturalization process, significantly reducing the time it takes for non-Spanish speaking citizens to obtain Salvadoran citizenship.
The approach could attract a new profile of immigrants, including bitcoin investors, who have moved to El Salvador, especially to the coastal areas.
However, the measure comes in a context of economic challenges for Bukele’s government, which is negotiating a new financing program with the International Monetary Fund (IMF).
The IMF has previously expressed concerns about the risks associated with adopting bitcoin as legal tender.
Politically, Bukele’s re-election is a controversial issue as El Salvador’s constitution prohibits consecutive terms in office.
However, a ruling by the country’s highest court, whose members are appointed by Congress controlled by Bukele’s party, cleared the way for his candidacy, a decision that drew international criticism, including from the United States.
This new bitcoin-based migration law is yet another chapter in El Salvador’s search for innovative solutions to its economic and social challenges, although it is surrounded by debates over its long-term viability and impact.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
