El Salvador Launches Tether Visa Program: Crypto Pathway to Citizenship
[TL; DR]
El Salvador has launched its Freedom Visa Program where wealthy investors will invest $1 million each.
The country uses the funds generated from the Freedom Visa Program to develop key national infrastructure like transport and communication networks.
1,000 high-net-worth individuals will participate in the Freedom Visa Program.
Introduction
Although some countries tend to renege on adopting cryptocurrencies and other digital currencies others are progressing well. Singapore, El Salvador, Slovenia, Portugal, Switzerland, Germany and Malta are examples of countries that have high crypto adoption rates.
This article discusses how El Salvador has progressed in its adoption of cryptocurrencies, particularly Bitcoin.
El Salvador Introduces Crypto Investor VISA Program
Although El Salvador President, Nayib Bukele stepped down to pave the way for new national elections, in 2021 he guided the country to adopt bitcoin as a legal tender.
Recently, El Salvador partnered with Tether, the USDT stablecoin issuer, to introduce El Salvador Freedom Visa Program, tailored to attract high-net-worth individuals and other investors to make a great impact on the society.
By instituting the Freedom Visa Program, El Salvador has cemented its role as a leading crypto friendly country. In fact, El Salvador was the first country to adopt bitcoin as a legal tender.
The Freedom VISA Program is instrumental in enabling individuals to participate in the economic development of the country. Thus, several households and individuals have the chance to support the economic development of the country and shape its future.
Read more: With El Salvador’s Election Looming, How is the Bitcoin Social Experiment Going?
Nonetheless, only 1000 individuals are able to invest through the Freedom Visa program, which gives them a chance to seek residency and citizenship.
Posting on its blog Tether said, “This visa program is designed to foster an environment where individuals contribute to shaping a new socio-economic landscape for El Salvador, a growing hub of international tourism, and attract individuals deeply committed to catalyzing economic expansion and driving transformative societal change.”
Other countries call similar arrangements Golden Visa programs. To participate in the El Salvador Freedom VISA Program an individual should invest $1 million which gives one the right to get a passport and citizenship. The investor can use bitcoin or Tether USDT to fund the program.
El Salvador aims to generate around $1 billion annually if investors fill all the spots every year. As you may anticipate, the country has partnered with Tether to out-roll the programme. Nevertheless, this program is far more costly than those of other countries like Dominica and St. Lucia as well as Antigua and Barbuda. Most of these programs require around $100,000.
Read also: The Economic Impact of Adopting Bitcoin
Paolo Ardoino, CEO of Tether highlighted the nature of the partnership and programme. He said, “Our partnership with El Salvador marks a significant milestone for Tether as a technology provider. This initiative is a testament to our commitment to fostering financial freedom and innovation in communities and cities.”
He added, “It’s a unique opportunity to leverage our technological prowess to spur growth and innovation in the region. Our role in this partnership underscores the criticality of robust infrastructure in instigating meaningful change.”
On the other hand, Adriana Mira, El Salvador’s Vice Minister of Foreign Affairs stated the focus of the programme. Mira said, “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.”
Read also: How are cryptocurrencies currently regulated in countries around the world?
Best Countries for Bitcoin
El Salvador is not the only country that has taken a progressive stance on using bitcoin. There are many other countries that are promoting the use of bitcoin and other cryptocurrencies.
Singapore, Slovenia, Portugal, Switzerland, Germany, Malta, Canada, Netherlands and Estonia are examples of crypto friendly countries. Let’s briefly look at what these countries friendly to crypto have done to increase the use of bitcoin and other cryptocurrencies.
Switzerland
Switzerland is one of the best countries for crypto as it has become a hub for blockchain companies. For example, the country hosts many large crypto firms like Ethereum Foundation, Tezos Foundation and Cardano Foundation. It has low taxation on cryptocurrency trading as well as clear token classification.
Malta
Malta, popularly referred to as a “Blockchain Island, ‘’ is another country with crypto freedom. As a result of its crypto friendly legislation the country hosts many established blockchain projects like BitBay, Binance and OKX.
Also, the aim of its crypto regulation is to protect crypto businesses and investors. There is no gain tax on cryptocurrency transactions, a reason why most people use bitcoin and other coins in the country.
Singapore
Another country with high crypto adoption is Singapore. First, the country has crypto supportive regulations, a reason why there are many crypto firms in the country.
Its crypto legislation provides clarity on what blockchain based firms should do and how the investors should behave. For instance, the Monetary Authority of Singapore (MAS) uses the Payment Services Act to supervise cryptocurrency activities in the country.
Portugal
Portugal is one of the countries friendly to crypto. The popularity of cryptocurrencies in the country stems from a supportive legal environment. For instance, the country exempts individuals from paying taxes on crypto profits. It also has clear cryptocurrency regulatory guidelines.
Germany
There is no question that Germany is one of the European countries that supports the blockchain and cryptocurrencies. It regulates cryptocurrencies under the Banking ACT which demands all crypto firms to get licenses from the Federal Financial Supervisory Authority (BaFin). They should also comply with AML and CTF rules. All these create regulatory clarity for the sector.
Conclusion
El Salvador has launched its Freedom Visa Program which enables wealthy investors to contribute towards the development of the country. Each investor should invest $1 million in the program and stand a chance to get a passport and citizenship. If the country gets the expected 1,000 investors it may generate more than $1 billion per year from this program.
