El Salvador, in partnership with Tether, the creator of USDT, has introduced a new visa initiative to entice investors and propel its burgeoning digital economy.
Named the “Adopting El Salvador Freedom Visa Program,” this initiative offers a pathway to Salvadoran citizenship for those ready to make significant investments in Bitcoin or the stablecoin USDT. To enroll, applicants must submit a non-refundable deposit of USD 999 in Bitcoin or USDT and undergo a KYC process. Upon approval, this deposit will count toward the required $1 million investment in Bitcoin or USDT necessary to obtain the Freedom Visa and subsequent citizenship.
“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”, said Adriana Mira, El Salvador’s Vice Minister of Foreign Affairs.
Tether’s participation aims to reinforce the country’s standing as a leader in mainstream crypto adoption. Paolo Ardoino, CEO of Tether, emphasized the company’s dedication to driving progress through its blockchain payment infrastructure. El Salvador drew attention in 2021 as the first country to recognize Bitcoin as legal tender.
Through incentivizing engagement in its expanding digital economy, El Salvador seeks to position itself as an appealing hub for technology and innovation within the Central American region.
Why Doesn’t El Salvador Sell Its Bitcoins?
El Salvador’s decision not to sell its bitcoins despite the rising value poses a compelling question. Selling now could recoup the entire investment and yield an extra $7 million in profit. However, this strategic hesitation stems from several pivotal factors.
Bitcoin’s legal tender status alongside the dollar has spurred diverse gains, including heightened tourism, increased investment, job creation, and the strengthening of local economies like Bitcoin Beach. Moreover, millions of Salvadorans embracing Bitcoin have gained access to banking, saving millions in remittance commissions and fostering future financial empowerment.
Additionally, the government’s bitcoin purchase has yielded a $7 million value increase, and by mining bitcoins using surplus geothermal energy, El Salvador fortifies its reserves with the world’s most valuable digital asset.
El Salvador’s strategy is resolutely long-term, aimed at hedging against global economic uncertainties like inflation and devaluation. Despite Bitcoin’s volatility, its consistent upward trend of 1.4 billion percent since inception underscores its enduring value and aligns with a traditional dollar-based analysis of long-term investment.