By Moustafa Daly
El Salvador launched a Bitcoin-based citizenship-by-investment (CBI) program, Freedom VISA, targeting crypto investors.
It is one of the first CBI programs in the world to accept Bitcoin as payment for citizenship, along with the programs of Vanuatu and Antigua and Barbuda.
For a donation equivalent to $1 million in bitcoins, foreign investors can now get citizenship in the Central American country. The investment will be made in the newly announced Volcano Bonds.
El Salvador’s Bitcoin Volcano Bonds have secured regulatory approval, paving the way for their anticipated debut in 2024. These financial instruments are intricately linked to the country's Bitcoin mining operations, leveraging the abundant volcanic energy resources.
The recent regulatory green light constitutes a significant milestone, allowing El Salvador to move forward with its strategy that targets expanding its cryptocurrency-backed financial instruments.
However, the $1 million price tag makes the program arguably one of the world’s most expensive CBI programs. A Salvadoran passport allows holders to enter 133 countries without a visa, including the Schengen Area and the United Kingdom (UK).
Who is El Salvador’s Freedom VISA targeting?
Targeted at individuals with significant bitcoin wealth, Freedom VISA will also be open to investors with significant holding of other crypto assets like stablecoins.
However, the new visa is targeting a relatively small pool of candidates. As per a recent report, the world currently only has 88,200 crypto millionaires, 182 crypto centi-millionaires, and 22 crypto billionaires.
The news comes two years after El Salvador became the world’s first country to legally recognize Bitcoin as a legal currency in addition to the U.S. dollar. The recent surge of Bitcoin prices past $40,000 reaped significant profits for the country, as announced by President Nayib Bukele. El Salvador’s current bitcoin holdings amount to $130 million.
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