Introduction
El Salvador has introduced a new citizenship-by-investment program called the "Adopting El Salvador Freedom Visa Program." The program offers a residency visa and pathway to citizenship for 1,000 individuals who are willing to invest $1 million in Bitcoin (BTC) or Tether (USDT) in the country. However, the cost of El Salvador's citizenship appears to be significantly higher than that of neighboring Caribbean countries.
A Steep Price
While other Caribbean countries offer citizenship for as low as $100,000, El Salvador's program requires a $1 million investment. The program, announced by the government and stablecoin issuer Tether, includes a non-refundable deposit of $999 that is credited toward the total investment. If all spots are filled, the program could raise $1 billion for El Salvador, making it a lucrative income source for the country.
Comparisons with Other Countries
According to Alistair Milne, the founder of crypto hedge fund Altana Digital Currency, El Salvador's offering is considered "uncompetitive in the global market." In comparison, a European Union citizenship can be purchased for less. Malta, for example, offers citizenship by investment for $810,000 (750,000 euros) and provides access to the EU's visa-free Schengen Area comprising 23 countries. Other neighboring Caribbean nations such as Antigua and Barbuda, Dominica, St. Lucia, Grenada, and St. Kitts and Nevis also offer citizenship programs with lower investment requirements.
Benefits of Investing in El Salvador
Despite the higher cost, some crypto investors may be enticed to invest in El Salvador due to the country's pro-Bitcoin policies. President Nayib Bukele has enacted measures such as recognizing Bitcoin as legal tender and offering tax incentives to tech companies investing in El Salvador. These policies could attract investors who believe in the potential of Bitcoin and its impact on the country's economy.
Conclusion
El Salvador's BTC 'Freedom Visa' program offers a path to citizenship for wealthy individuals willing to invest $1 million in Bitcoin or Tether. While the cost is considerably higher than other countries' citizenship-by-investment programs, El Salvador's pro-Bitcoin policies may attract crypto investors looking for opportunities in the country.
