Is The $1M El Salvador Freedom Visa Program Too Ambitious Even For Nayib Bukele?

YEREVAN (CoinChapter.com) — El Salvador, the Central American nation that made headlines for becoming the first country to declare Bitcoin (BTC) as legal tender, has unveiled its flagship Freedom Visa Program. In keeping with Former President Nayib Bukele’s plans to make the country a hub for crypto development, the new scheme will create an easy path for investors to obtain citizenship. 

Bukele stepped down early this month to focus on his re-election campaign. The country goes to polls in February 2024. Currently, the country is led by Acting President Claudia Rodríguez de Guevara. She is the first female head of state of El Salvador.

What is the “Adopting El Salvador Freedom Visa Program?”

El Salvador’s new citizenship-by-investment scheme, officially known as the “Adopting El Salvador Freedom Visa Program,” is the latest attempt by President Bukele to attract the crypto community. 

Faced with tough regulations, high taxes, and sometimes arbitrary crackdowns, many investors and companies seek a haven to park their digital holdings. In this regard, the official San Salvador hopes its offer will find favor within the industry.

Under the program, 1,000 individuals will receive a residency visa and potential citizenship in El Salvador. The catch, however, is that they must commit to investing at least $1 million in either Bitcoin (BTC) or Tether (USDT).

Tether Global, the company that issued USDT, will handle the technical aspect of the project. 

“This initiative highlights our commitment to supporting cities and communities in their pursuit of financial freedom and innovation. It represents a unique opportunity for us to utilize our technological capabilities to foster growth and innovation in the region,” 

Paolo Ardoino, the CEO of Tether said in the official press release. 

Moreover, to be considered, applicants must pay a non-refundable $999 charge in Bitcoin or USDT. They will also be subject to a Know Your Customer (KYC) verification. 

Once accepted, their deposit will be included in the overall payable $1 million. 

“This collaboration signifies a pivotal milestone in our dedication to economic development and innovation. The ‘Adopting El Salvador Freedom Visa Program” offers an extraordinary opportunity for individuals to actively participate in shaping a prosperous future for our nation,” 

Adriana Mira, El Salvador’s Vice Minister of Foreign Affairs claimed.

A great initiative. But….

Getting easy access to a Bitcoin-friendly nation is great. However, some are already questioning the viability of such a huge investment. 

According to Alistair Milne, the Chief Information Officer (CIO) of crypto hedge fund Altana Digital Currency finds El Salvdor’s program “uncompetitive in the global market.”  

In a post on social media platform X (formerly Twitter), he indicated that other countries offer better conditions. For example, some European Union (EU) nations offer cheaper alternatives. 

Dedicated websites, such as Golden Visas, offer several affordable options. Countries like Greece, Montenegro, St. Kitts and Nevis, Grenada, and Malta offer similar options. In some, investment starts at as little as $100,000. 

For El Salvador to ask for so much money is unrealistic to some people. However, considering Nayib Bukele’s positive attitude towards Bitcoin and cryptocurrencies, some may be willing to pay a premium if he gets re-elected.

Meanwhile, others insisted the program would find favor among investors.

“The El Salvador Freedom Visa initiative is an amazing development for the country of El Salvador and the many people and companies who will pick El Salvador as their home,” 

Gabor Gurbacs, founder of rewards management system PointsVille wrote. He is also a strategy advisor at VanEck and Tether. 

Recently, Bukele tweeted that his country’s investment in Bitcoin had yielded over $3.6 million in profit despite the market crash. With the crypto industry poised to recover, those profits have the potential to increase. Particularly, Bukele has clarified that his administration has no intention of selling BTC anytime soon.