El Salvador’s president has announced plans to grant citizenship to foreign investors, which is expected to further enhance ties with the US.
Populist Nayb Bukele stopped targeting investments involving bitcoin, but referred to El Salvador as “the land of #Bitcoin freedom.”
The president announced a package of 52 legal reforms to Congress via Twitter, including a proposal to grant citizenship for investment.
“I am sending 52 legal reforms to Congress to eliminate red tape, reduce bureaucracy, tax incentives, citizenship for investment, new securities laws, stability contracts, and more,” he wrote.
The move comes after the US Senate Committee on Foreign Relations called on the State Department to investigate the legal status of bitcoin in El Salvador.
Senator Bill Cassidy said last week that the adoption of bitcoin “opens the door to money laundering cartels and undermines American interests.”
The president responded with distinctive swiftness, “You have no jurisdiction over a sovereign and independent nation.”
“We are not your neighborhood, your backyard, or your front yard. Stay away from our internal affairs. Don’t try to control something you can’t control.”
El Salvador accepts bitcoin as legal tender
Last September, El Salvador became the first country in the world to adopt bitcoin as legal tender other than the US dollar, in a move criticized by the International Monetary Fund (IMF). He believes adoption could lead to greater financial instability and risk for the country.
Soon after, the President announced the creation of an income and wealth tax-free “Bitcoin City”.
The city will be funded by government-issued bitcoin bonds.
President Bukele has made some interesting predictions about bitcoin for this year. He claims it will reach $100k, that two other countries will adopt bitcoin as legal tender this year, and that it will become “a major election issue in the US elections”.
El Salvador holds at least 1,801 bitcoins, with a current value of around $72m.
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