El Salvador Implements New Law to Lure Foreign Bitcoin Investors

El Salvador has passed a new law to extend citizenship to foreign investors who hold a significant stake in Bitcoin (BTC). Interestingly, this move, a first of its kind globally, showcases the country’s commitment to embracing digital innovation and attracting foreign investment in the burgeoning cryptocurrency space.

New Law Offers Pathway for Investors 

The law, expected to come to light in a few days, offers a pathway for foreign investors who contribute to El Salvador’s economy by investing in Bitcoin. Notably, the law had support from President Nayib Bukele’s New Ideas Party. However, there was no mention of a specific amount to be donated to qualify.

With the passage of the new law, qualified investors would be exempted from the usual process of naturalization. The immigration process includes a five-year residency for a person from a non-Spanish speaking country or two years if the person has a Salvadoran spouse.

El Salvador Sets Pace for Crypto Adoption

Meanwhile, El Salvador’s decision to tie citizenship to BTC investments reflects a bold and unconventional approach to economic development. By embracing cryptocurrency, the country aims to position itself as a global hub for digital finance and innovation. This move also aligns with El Salvador’s broader strategy of adopting BTC as a legal tender, a decision made in 2021 that marked a historic shift in the traditional financial paradigm.

Markedly, the law presents a unique opportunity for investors who believe in the long-term potential of Bitcoin to not only participate in the country’s economic growth but also to become active members of its society.

El Salvador Push for Crypto Adoption

At the beginning of 2023, El Salvador introduced a legalization bill for digital assets after the proposal scaled through with 62 votes in its favor and another 16 against its implementation. At the time, the National Bitcoin Office (ONBTC) of El Salvador explained that the digital securities laws would usher in unprecedented consumer protection from bad actors.

El Salvador’s Crypto Enthusiasm Declines

Still, El Salvador seems to be struggling to get its people to adopt and integrate crypto. Although, in terms of its books, the crypto numbers are looking good. Prescient Bukele announced that the country’s combined BTC investments have reached $131 million.

Though El Salvador is involved in several pro-crypto initiatives, a recent survey reveals that the nation’s crypto enthusiasm is on a decline. Sadly, only 2% of its 6.36 million people own Bitcoin. 

Similarly, the Central American country lost its place as the 4th largest crypto ATM hub in Australia.