El Salvador is breaking new ground in the cryptocurrency world, offering a unique "Freedom Visa" program that grants citizenship to individuals willing to invest $1 million in Bitcoin or Tether. This pioneering move is part of the country's broader Bitcoin-friendly initiatives, which have been bolstered by its own Bitcoin investments, now valued at around $120 million. The program, supported by stablecoin issuer Tether, caps the number of visas at 1,000 people per year, aiming to attract high net worth individuals to contribute to the nation's economic and cultural development.
The Freedom Visa initiative, announced by Salvadoran President Nayib Bukele, aligns with similar "golden visa" programs worldwide, where countries incentivize investment with residency and citizenship offers. However, El Salvador stands out as the only nation accepting cryptocurrency for this purpose. Paolo Ardoino, CEO of Tether, expressed his enthusiasm for the collaboration, highlighting Tether's commitment to supporting financial freedom and innovation.
Applicants for the Freedom Visa program must pay a $999 deposit in Bitcoin or Tether, undergo Know Your Customer (KYC) procedures, and upon approval, their deposit counts towards the required $1 million investment. The program is open to both individuals and families, offering a pathway to citizenship and a passport that provides visa-free travel to the EU's Schengen zone.
Despite the attractiveness of the program, El Salvador's approach to Bitcoin has not been without controversy. The country's decision to make Bitcoin legal tender in 2021 and subsequent investments in the cryptocurrency have drawn international scrutiny and criticism. Additionally, human rights groups have raised concerns over President Bukele's harsh crackdown on gangs and the weakening of the rule of law, as reported by Amnesty International.
Moreover, El Salvador's plans to issue $1 billion in Bitcoin-backed bonds for a "Bitcoin City" project and a Bitcoin mine powered by geothermal energy from volcanoes have faced delays and remain unrealized. Critics have also pointed out the limitations of Bitcoin's legal tender status for everyday transactions, particularly after the surge in popularity of BRC-20 tokens on the Bitcoin network.
Despite these challenges, President Bukele remains a popular figure in El Salvador, credited with reducing crime and bringing stability to the country. As El Salvador continues to navigate the complexities of its Bitcoin-centric policies and projects, the world watches closely to see the long-term impact of these ambitious initiatives on the nation's economic and social landscape.
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