El Salvador Introduces $1M Bitcoin Citizenship-by-Investment Program Amidst Pro-Bitcoin Policies
Summary:
El Salvador has introduced a citizenship-by-investment program asking for a $1 million Bitcoin or Tether investment, a notably high amount compared to $100,000 starting rates in the Caribbean. The "Adopting El Salvador Freedom Visa Program" could net El Salvador $1 billion if fully taken up. Despite its expensive nature, the pro-Bitcoin policies in the country, including tax incentives, could attract crypto investors. The initiative emerges amidst President Nayib Bukele's efforts to combat crime and prepare for his 2024 re-election bid.
El Salvador has introduced a new initiative that offers residency and a route to citizenship for individuals ready to invest $1 million in Bitcoin (BTC) or Tether (USDT). However, this asking price for citizenship seems hefty compared to starting rates in neighboring Caribbean nations, which only ask for $100,000. Unveiled on December 7th, El Salvador's government and Tether, the stablecoin issuer, have termed this initiative the "Adopting El Salvador Freedom Visa Program".
The investment program invites affluent investors to commit a $1 million in Bitcoin or Tether, beginning with a non-refundable $999 deposit that goes towards the total amount. If all slots are filled, the program is predicted to bring a considerable $1 billion to El Salvador, mirroring similar programs like the one in Vanuatu that boosts their annual income by millions.
Commenting on the program, Altana Digital Currency's founder, Alistair Milne, stated on Twitter that El Salvador's deal seems less appetizing on the global market, pointing out that EU citizenship comes at a lesser price tag. According to data from Henley & Partners, an investment migration consultancy, Malta offers a $810,000 citizenship-by-investment scheme enhancing access to 23 countries within the EU's Schengen Area visa-free.
Other nations also offer similar schemes, with Antigua and Barbuda, Dominica, and St. Lucia offering citizenship for $100,000 in donations to sovereign development funds, while Grenada and St. Kitts and Nevis ask for contributions starting from $150,000 and $250,000 respectively.
Nonetheless, crypto investors might be attracted to El Salvador due to the country's growing acceptance of Bitcoin. El Salvador's President, Nayib Bukele, has approved pro-Bitcoin policies including its recognition as legal tender and tax breaks for tech firms for the next 15 years. Bukele, who has made efforts to reduce the country's high murder rates since his tenure began in 2019, stepped down on December 1 to prepare for his 2024 re-election ahead of February's general election.
Published At
12/8/2023 8:29:29 AM
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