In a surprising move on Thursday, December 21, El Salvador’s Congress has given the green light to a migration law that facilitates expedited citizenship for foreigners making “donations” in Bitcoin towards government social and economic development initiatives.

El Salvador New Reforms for Bitcoin Investors

The unicameral legislature, in an unexpected vote on Wednesday night, approved the reform, receiving backing from President Nayib Bukele’s New Ideas party, which holds control over Congress. The newly passed law is anticipated to be enacted in the coming days. This development adds another layer to El Salvador’s unique integration of cryptocurrency into its legislative framework.

President Nayib Bukele is vying for re-election in the upcoming election scheduled for Feb. 4 in the Central American nation. The reform under consideration emphasizes the “vital interest” of the president’s development initiatives, with a focus on encouraging “altruistic foreigners interested in supporting the economic, social, and cultural development of El Salvador… by donating Bitcoin,” reports Reuters.

It’s noteworthy that the law does not specify a minimum requirement for the Bitcoin “donation.” As of Thursday, the trading value of Bitcoin stood at $43,741. Earlier this month, El Salvador also kickstarted its citizenship initiative, under the guise of its Freedom Visa Program.

The recently approved migration reform includes provisions allowing individuals to bypass the standard naturalization process. Typically, this process mandates five years of permanent residence for individuals from non-Spanish-speaking countries, or two years if the individual is married to a Salvadoran citizen.

El Salvador adopted Bitcoin as a national currency in 2021, yet the implementation has been gradual, with limited utilization. Notably, certain foreign proponents of Bitcoin like Max Keiser have chosen to relocate to El Salvador, particularly in beach communities.

The Country’s Own Bitcoin ETF

Max Keiser has indicated that El Salvador is exploring the possibility of introducing a Bitcoin ETF in the country. Unlike current ETF applications that primarily involve fiat versions, this proposed ETF would enable both Bitcoin deposits and withdrawals, providing a more comprehensive crypto investment avenue.

Like the Sprott physical Gold ETF, #ElSalvador’s #Bitcoin ETF will give investors a #BTC exit with actual BTC.

This will put the 13 BTC ETF’s to be listed in the US to shame. pic.twitter.com/xEsKBqaCdB

— Max Keiser (@maxkeiser) December 21, 2023

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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