$1 Million Price Tag for El Salvador’s New Crypto Residency Offer

This week, El Salvador launched a new “Freedom Visa” program targeting wealthy cryptocurrency enthusiasts. The central American nation will offer residency and a pathway to citizenship for up to 1,000 people who invest at least $1 million in bitcoin or the tether stablecoin.

Keypoints

El Salvador has launched a “Freedom Visa” program that offers residency and a path to citizenship for people who invest $1 million in bitcoin or tether
The program has 1,000 spots available and could bring $1 billion in investments to El Salvador if filled
The $1 million investment required is much higher than similar “golden visa” programs in the Caribbean that start around $100,000
El Salvador was the first country to adopt bitcoin as legal tender in 2021 and has offered tax breaks to attract crypto companies

The move comes as part of El Salvador’s embrace of bitcoin under the leadership of President Nayib Bukele. In 2021, El Salvador made history as the first country to adopt bitcoin as legal tender. The government has also offered tax breaks to attract cryptocurrency companies and holds over $50 million worth of bitcoin in its treasury.

But El Salvador is requiring a steep price for its new Freedom Visa. At $1 million, the investment threshold is over ten times higher than similar “golden visa” programs in the Caribbean aimed at wealthy investors. For example, neighboring countries like Antigua and Barbuda sell citizenship for around $100,000 – one tenth the amount required for El Salvador’s visa.

Tether Powers El Salvador’s Visionary Freedom Visa Program Through Technology Support ????????????

Experience Freedom, Security and a #Bitcoin lifestyle by adopting El Salvador as your home through the Freedom Visa Program.

For more information, please visit ⬇️https://t.co/QdF6XPDsO3

— Tether (@Tether_to) December 7, 2023

The high price tag has led some in crypto circles to doubt how competitive El Salvador’s offer will be globally. But the country is hoping that bitcoin whales intrigued by El Salvador’s crypto-friendly policies will bite. If the 1,000 visa spots fill up, El Salvador could gain $1 billion in foreign investment.

The new Freedom Visa is the latest move by President Bukele to reduce reliance on the US dollar and attract alternative income sources to combat inflation. Bukele has touted bitcoin as financial liberation from organizations like the World Bank and IMF. His administration is aiming to leverage interest in bitcoin to gain financial self-sufficiency.

In addition to economic policies, Bukele has also taken dramatic steps to curb violent crime since taking office in 2019. El Salvador has long suffered one of the highest homicide rates in the world. Through aggressive law enforcement initiatives, Bukele has succeeded in cutting the murder rate substantially.

However, groups like Amnesty International allege that Bukele’s crime and security methods have led to widespread human rights violations. Over 65,000 Salvadorans have been detained without proper cause under his administration’s crackdown.

As Bukele pursues cutting-edge crypto economic policies on one hand while engaging in hardline security policies on the other, El Salvador remains a country in transition. This week’s Freedom Visa announcement aims to accelerate El Salvador’s unconventional path under Bukele’s guidance. Time will tell whether the president’s controversial political and economic gambles pay off.