El Salvador offers 'Freedom Visa' for $1 million crypto investment

El Salvador, which hit the headlines in 2021 by giving Bitcoin legal tender status, has launched a $1 million “Adopting El Salvador Freedom Visa” program. 

Limited to 1,000 participants per year, the Freedom Visa program aims to attract individual to seek residency and citizenship via investment, similar to Golden Visa programs in other countries. 

Under the program, investors will apply by investing $1 million in either Bitcoin BTC +0.53% or USDT. Successful applicants are also eligible for a Salvadoran passport and to obtain citizenship.

“The Adopting El Salvador Freedom Visa Program offers an extraordinary opportunity for individuals to actively participate in shaping a prosperous future for our nation," El Salvador’s Vice Minister of Foreign Affairs Adriana Mira said in a statement.

El Salvador’s Ministry of Foreign Affairs said the program can generate $1 billion annually for the country, if all places were filled each year. The program is in collaboration with stablecoin issuer Tether, which will serve as the technology partner.

Notably, the initiative is 10 times more expensive than similar citizenship by investment programs in the neighboring Caribbean island nations of Antigua and Barbuda, Dominica and St. Lucia, according to migration consultancy firm Henley Partners.

Tether's role

Tether is providing support for the initiative as El Salvador’s technology partner. “This initiative highlights our commitment to supporting cities and communities in their pursuit of financial freedom and innovation,” Tether CEO Paolo Ardoino said. “This partnership reinforces our dedication to advancing technology, empowering nations and enabling individuals to invest in a future where innovation and progress go hand in hand."

Former CTO Ardoino became CEO of Tether this month, succeeding Jean-Louis van der Velde, who transitioned to an advisory role.

On Monday, El Salvador President Nayib Bukele said the nation’s Bitcoin portfolio is now back in the black by about $3.6 million after being in the red for an extended period, clapping back at all the naysayers that doubted his nation's decision to purchase Bitcoin. However, others disputed Bukele’s claim, saying the information he provided about El Salvador’s Bitcoin treasury was verifiably false.