El Salvador's President Nayib Bukele is a supporter of Bitcoin. Alex Peña—Getty Images
On Thursday, the Salvadoran government, in conjunction with stablecoin company Tether, announced a joint initiative called “Adopt El Salvador's Freedom” that will allow foreigners to obtain a Salvadoran passport in exchange for paying $1 million in Bitcoin.
In 2021, El Salvador becomes the first country to adopt Bitcoin as legal tender, requiring businesses to accept major cryptocurrencies as a payment method, and rolling out a digital wallet called “Chivo” that allows citizens to sign $30. With Bitcoin encouraged to participate in up bonuses.
The project was controversial, with Salvadorans protesting the move as they worried about President Nayib Bukele's transition to an authoritarian regime, but implementation was slow as most citizens stuck to cash. Meanwhile, Bukele's disbursement of tens of millions of dollars from federal funds on Bitcoin has had disastrous results, with the price dropping from an all-time high of around $69,000 in November 2021, when Bukele announced the development of “Bitcoin City”. From its peak price, it initially plummeted to less than $17,000. In 2023.
Still, El Salvador has proven popular with Bitcoin enthusiasts around the world, with the country's tourism minister announcing in May that historic numbers of tourists were coming to the country driven by its cryptocurrency efforts. It was announced that there was a push. Some of them are some of the most prominent 'Bitcoins' in the international community, including Swan Bitcoin, an influential company based in the surf town of El Zonte, which is largely credited with starting the country's Bitcoin experiment. It contained many of the coins Maxis.
The country's sharp decline in crime, fueled by Bukele's controversial policy of locking up thousands of alleged gang members in the country, is motivating Bitcoin supporters to flock to the country.
“A visionary individual”
Thursday's announcement marks a new phase in El Salvador's Bitcoin efforts, and comes on the heels of Bukele's unconfirmed statements that recent price increases have turned Bitcoin investments profitable. It was done.
Bukele's government has long partnered with Bitfinex, an affiliate of Tether (the world's leading stablecoin, in this case a cryptoasset pegged to the US dollar), but the company has maintained a lack of transparency and offshore jurisdiction. has faced intense scrutiny. In April, Bitfinex became the first company to receive a license under El Salvador's new cryptocurrency regulatory regime, with the government appointing it to support the issuance of long-delayed Bitcoin-backed bonds.
According to a Tether statement shared with luck, The new visa program allows participants to obtain an El Salvadoran passport with a one-time payment of $1 million in Bitcoin. The company calls this an “investment,” but it's unclear where the money will go. The program is seeking “visionary individuals,” including “high-net-worth investors.”
To begin the process, applicants must pay a $999 non-refundable deposit in Bitcoin and Ether, followed by an unspecified “get to know your customer” process. The statement includes a government link to an application page with a banner that reads “Powered by Tether.”
The program comes amid concerns among Salvadorans that the influx of tourists, especially to coastal cities like El Zonte that attract crypto enthusiasts, is displacing low-income households. Published in local newspaper in late November Mara Yerba It was reported that 25 families are facing eviction in El Zonte due to the construction of a public park called Bitcoin Beach Club de Playa.
