El Salvador made history in 2021, becoming the first country in the world to adopt Bitcoin as a legal tender, after rolling out a digital wallet called “Chivo”, with a $30 signup bonus to entice its citizens.
However, citizens were slow to adopt it, with many criticizing it and preferring to keep using cash. President Nayib Bukele’s ideological shift to autocracy didn’t help matters. The president also made an ill-informed move to use tens of millions of dollars of government cash to purchase Bitcoin, causing prices to fall from approximately $69,000 in 2021, to slightly below $17,000 at the beginning of this year.
El Salvador makes another “visionary” move
On Thursday last week, El Salvador and Tether, the stablecoin firm, announced a joint initiative dubbed “Adopting El Salvador Freedom.”
The new plan will make it possible for outsiders to get hold of the country’s passport, by paying a fee of $1 million in Bitcoin.
In a statement, Tether said that in the visa allocation plan, participants will be required to part with a one-time fee of $1 million in exchange for El Salvadoran citizenship. The fee is described as an “investment”.
However, details are scanty on where the money will be placed or invested. The initiative seeks to attract individuals who are seen as visionary and have a high net worth.
To begin the process, an investor will be required to pay a nonrefundable fee of $999 in Ether and Bitcoin, in addition to participating in a process dubbed, “Know your customer.”
Bitcoin acolytes from around the world view El Salvador as a holy site
Despite these setbacks, El Salvador has become an incredibly popular destination, with Bitcoin enthusiasts from around the world visiting the country in huge numbers.
Companies such as Swan Bitcoin have also set up shop in the country. The visitors have also been boosted by the president’s controversial directive that the country’s alleged gang members be locked up summarily.
However, El Sallvador’s citizens have raised concerns that the large number of tourists coming into the country is pushing out families with low incomes.
In the coastal city of El Zonte, there have been reports in the media that at least 25 families were being evicted to make way for the construction of a public park called, “Bitcoin Beach Club de Playa.”
Despite these concerns, the El Salvador government has announced that it expects to sell out the Freedom Visa program by the end of this year.
The program is limited to 1000 openings per year.
