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Bitcoin Investors’ New Passport: El Salvador’s Citizenship Twist

December 22, 2023
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Bitcoin Investors’ New Passport: El Salvador’s Citizenship Twist
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You are here: Home / News / Bitcoin News / Bitcoin Investors’ New Passport: El Salvador’s Citizenship Twist

Bitcoin

December 22, 2023 by Lipika Deka

El Salvador is set to grant citizenship to foreign Bitcoin investors contributing to government social and economic development programs. The unicameral legislature, with the backing of President Nayib Bukele’s New Ideas party, passed the groundbreaking reform, expected to take effect in the coming days, just in time for the nation’s upcoming elections on Feb. 4.

The initiative, labeled a “vital interest” in the president’s ambitious development projects, aims to attract “altruistic foreigners interested in supporting the economic, social, and cultural development of El Salvador… by donating bitcoin,” according to Reuters. Bukele, eyeing re-election, hopes to leverage this unique strategy to bolster his support in the Central American nation.

BitcoinImage Credit: Arnold Hubach

Unlike traditional immigration processes, the reform does not specify a minimum Bitcoin “donation” requirement. However, eligible individuals will bypass the standard naturalization process, which typically demands five years of permanent residence for non-Spanish-speaking immigrants or two years if married to a Salvadoran citizen.

El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender, and it has maintained its top status for global adoption since 2022. This move has attracted cryptocurrency enthusiasts worldwide, particularly to the nation’s picturesque beach communities. Recently, El Salvador obtained regulatory approval for its eagerly awaited Bitcoin bonds, colloquially known as “Volcano Bonds,” slated for launch in early 2024.

Meanwhile, Argentina has signaled a potential shift in its approach to cryptocurrency. Diana Mondino, Argentina’s minister of foreign affairs, announced on Dec. 21 that the nation is exploring the legalization of specific currencies, including Bitcoin, for contracts and payments. The “Bases for the Reconstruction of the Argentine Economy” decree, passed on Dec. 20, does not explicitly mention crypto but includes provisions allowing debtors to settle payments in currencies not recognized as legal tender in Argentina.

Argentina Boosts Bitcoin Adoption In Contracts

In a bold declaration on X [formerly Twitter], Mondino stated, “We ratify and confirm that in Argentina, contracts can be settled in Bitcoin, and also any other crypto.” This move positions Argentina as a potential trailblazer in embracing cryptocurrency for economic transactions.

El Salvador’s unconventional approach and Argentina’s evolving stance highlight the increasing global significance of cryptocurrency, with nations exploring novel ways to integrate digital assets into their economic landscapes. As the crypto revolution continues to unfold, these developments are sure to capture the attention of investors, enthusiasts, and policymakers worldwide.

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Copyright for syndicated content belongs to the linked Source : TronWeekly – https://www.tronweekly.com/bitcoin-investors-el-salvador-citizenship/

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