El Salvador launches a new government program targeting crypto investors. It provides a path to citizens for those willing to invest in El Salvador using Bitcoin. This is a part of the long-term program in which El Salvador is trying to position itself as a liberal market focused on innovative crypto investment.
After a few conditions are met, the program offers residency to those who invest a certain amount in Bitcoin and a path to citizenship. As the US crypto market becomes more heavily regulated, investors are more closely following Bitcoin news at ccn.com for opportunities outside the United States.
What’s the Freedom Visa Program?
El Salvador started a program called “Freedom Visa.”. It grants citizenship to every crypto investor investing at least $1 million in Bitcoin in El Salvador. The same rules apply to those who support the same amount in Tether.
The program covers no more than 1.000 such investors per year. At this point, it’s not clear how long the project will last, but chances are that it will continue for years to come if there’s an interest. The idea isn’t new, and other countries have tried attracting investors this way.
What do The Investors Get?
The investors that are selected for a Freedom Visa get the full rights that come with El Salvador citizenship, as well as the nation’s passport. Citizenship lasts a lifetime, and it applies to family members as well. This includes a spouse and all children under 18.
They’ll also benefit from the tax policy set to foster investments, and the liberal attitude El Salvador has towards Bitcoin. It’s especially important now when more governments are setting up more restrictive regulations towards cryptocurrency.
The Application Process
The application process is handled by Tether Global, the issuer of the altcoin in which applicants can invest in El Salvador’s economy. The website is already up, and investors have already started applying. The application costs $999 in Bitcoin or Tether, and the fee isn’t refundable if you change your mind.
The sign-up process is simple enough and takes just a few minutes, and the review takes up to six weeks. The immigration office will carefully review every application. The provided information is carefully reviewed and verified to ensure compliance with the program’s requirements. The investments should advance El Salvador’s business, economy, arts, and culture.
What’s Tether Global?
Tether Global is the company behind the stablecoin called USDT. It’s also operating the application process for the Freedom Visa in El Salvador. The company issues one of the largest stablecoins in circulation and one that’s competing with ordinary cryptocurrencies for users.
A stablecoin is a type of cryptocurrency tied to the value of a fiat currency issued by a central bank. USDT is tied to the value of the US dollar. It provides all the features of a cryptocurrency, such as fast and anonymous transactions, but its structure isn’t decentralized.
How’s the Process Going?
The process has just started, but it’s already showing promising results. Max Keiser, a well-known figure in the crypto community, commented on the overwhelming demand for the program, stating that they are already “overwhelmed with requests” and have “110 in process.”
This is part of a growing change in attitude toward crypto and the concept of citizenship. Many Western countries are becoming more restrictive towards crypto, and investors are moving to parts of the world that are open to it. Investors often receive residency and citizenship to create a welcoming business climate.
The Expectations
El Salvador has ambitious plans for the Freedom Visa project. They expect to find all 1000 investors for the program’s first year and to continue to get the same number in the years to come. This means the country receives $1 billion in investments and 1000 new citizens with the goal of starting a business.
Most of the initial investors will come from the US, but El Salvador expects investors from Europe and from Asia as well. Both the European Union and China have restrictive regulations regarding crypto. The EU has issues due to complicated regulations, and China has restrictive measures against decentralized finance.
Bitcoin in El Salvador
El Salvador has a history with Bitcoin as it tried to be one of the most welcoming nations regarding cryptocurrency. In fact, it’s the first country to accept crypto as legal tender. They recognized Bitcoin as such in September of 2021 and made history.
The country was also one of the first to buy crypto using its central bank as a mediator. El Salvador holds 2700 BTC in its treasure. That has yielded a profit of $3 million that the country is yet to realize. Many countries with more imposing economies have yet to realize the potential of cryptocurrencies.
Visas for Crypto
Other countries have gone down this path and yielded results by opening up their borders to investors willing to pledge funds in crypto. The programs are especially popular in Central and South America. At this point, 20 countries offer their passports to crypto investors, with varying conditions.
The Cayman Islands, a tax haven, has programs and so do the Vanuatu, Antiqua and Barbuda, St Kitts, and Nevis. The programs set up by these countries are to encourage investments, and they were written before Bitcoin. Not all countries we mentioned are as open and innovative regarding using crypto as El Salvador.
Wider Political Goals
The Freedom Visa Program is a part of the broader political goals for El Salvador. The country is experiencing inflation the same way many other countries do. The increase in investments should resolve the financial issues the country is dealing with and broaden the middle class.
The country also depends heavily on the US dollar. Introducing more crypto in the financial system is a way to get out of the relationship and gain financial independence. The use of stablecoin is especially important in this regard, as it balances dependency and venturing on its own.
Change in Attitude towards Crypto
Many countries and financial institutions are generally changing their attitude towards crypto. They are accepting Bitcoin much more broadly than ever before. This is the case with stock markets, traditional banks, and long-term government schemes like pension funds. Just a few years ago, crypto was popular because it was a way to get away from conventional finance, and now it’s a part of it.
This change has also led to a more vigorous regulation system. Countries such as El Salvador are adapting to these changes, and the visa program is a part of it.
Conclusion
El Salvador has joined about 20 other nations that provide citizenships to investors who plan to bring in $1 million a year in crypto investments. The passports will be awarded to 1000 investors who meet these demands while investing in Bitcoin or the stablecoin USDT.
Tether Global will handle the process on the technical side of things, but the Ministry of Foreign Affairs chooses who can get the citizenship. The investors also have the right to bring in their spouses and children along. The program is expected to invigorate the country’s economy and make it less dependent on the US dollar.
