El Salvador, known for pioneering the adoption of Bitcoin as legal tender, has unveiled a new initiative called the “Freedom Visa” to stimulate its tourism sector and bolster its economy. The National Bitcoin Office (ONBTC) in the Central American nation has launched this program amidst ongoing efforts to establish a tax-free, volcano-powered Bitcoin city.
The Freedom Visa is a citizenship program based on donations. El Salvador aims to grant a residency visa to individuals contributing one million dollars’ worth of Bitcoin or Tether to the national treasury. The Salvadoran government has partnered with stablecoin issuer Tether for this initiative, as revealed in an official announcement earlier this month.
The government, under President Nayib Bukele, has decided to offer only a thousand slots each year as part of the Freedom Visa program. Leveraging its pro-Bitcoin stance, El Salvador seeks to promote its unique citizenship visa plan to a global audience.
“Based on the current level of interest, we expect the program to sell out by the end of the year. If anything, in fact, it is actually underpriced. While there are many citizenship programs available in the world, there is only one Bitcoin country,” noted the ONBTC in an email conversation, as reported by CoinTelegraph.
Market analyst Alistair Milne expressed a somewhat critical view of the Salvadoran initiative, considering it “uncompetitive” compared to similar programs. Milne, the Chief Investment Officer of Altana Digital Currency Fund, shared his perspective on the offering.
The success and impact of the program will unfold over time, revealing its level of attractiveness and whether subsequent editions will be introduced. El Salvador has recently approved Bitcoin bonds, set to be available on Bitfinex Securities, the regulated division of the crypto exchange Bitfinex, starting early 2024.
These “Volcano bonds,” announced in 2021, enable Salvadoran residents to enter with a minimum investment of $100 (approximately Rs. 8,170). The bonds contribute to the nation’s economy, and any appreciation in Bitcoin’s values will be shared with bondholders. The evolving initiatives in El Salvador showcase the nation’s commitment to exploring innovative avenues for economic growth through its Bitcoin-centric approach.
Joseph Gutierrez holds Master’s degree in Business Administration. As an avid day trader, he is a master of technical analysis and writes tirelessly on how stocks are trading. Joseph has extensive knowledge in technical analysis & news writing. He delivers news reports regarding Market category.
