El Salvador Introduces a Law Granting Citizenship to Those Investing in Bitcoin

El Salvador has recently introduced legislation offering citizenship to individuals who invest in Bitcoin. This initiative comes shortly after the country launched a special Freedom Visa aimed at attracting foreigners interested in relocating to El Salvador.

Source: www.aa.com.tr

According to reports, El Salvador's legislative body, with the backing of Nayib Bukele's New Idea party, has passed a bill allowing foreigners to obtain citizenship by contributing Bitcoin to the nation's public and economic advancement initiatives. This legislation, which is anticipated to be enacted soon, received significant support from Bukele, who had previously played a pivotal role in recognizing Bitcoin as a legal currency in September 2021.

While there hasn't been an official declaration from the El Salvadoran government regarding this legislation, they have shared various updates related to it on social media platforms. Reuters highlighted that this move is of great significance to Bukele, especially with numerous Bitcoin-centric initiatives being undertaken by international enthusiasts.

El Salvador's new citizenship program, introduced in collaboration with stablecoin issuer Tether, is notably pricier than similar initiatives in nearby Caribbean nations, where the starting price is $100,000. Named the Adopting El Salvador Freedom Visa Program, it promises 1,000 citizenship slots to affluent investors who commit to investing $1 million in Bitcoin or USDT. Prospective participants begin with a nonrefundable $999 deposit, which is deducted from the total amount. If fully subscribed, this program could generate $1 billion for El Salvador, mirroring the significant revenue streams seen in other nations like Vanuatu, which reaps millions annually from its equivalent initiative. 

However, Alistair Milne, the founder of Altana Digital Currency, believes El Salvador's program is less competitive on the global stage, noting that EU citizenship could come at a lower price. For instance, Malta provides citizenship for an investment of 750,000 euros ($810,000), granting access to the visa-free Schengen Area encompassing 23 nations. Additionally, investment migration consultancy Henley & Partners mentions that nearby Caribbean countries, including Antigua and Barbuda, Dominica, and St. Lucia, also offer citizenship opportunities for a $100,000 contribution to national development funds.

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