1K $1MN BTC donors can get El Salvador citizenship—the first one-of-a-kind initiative to date

El Salvador, the first nation to make Bitcoin a legal tender and compel businesses to accept payments with the primary cryptocurrency, has yet to stop taking the world aback with the outstanding developments within the financial system. If it all started with the government’s encouragement of people to transact with Bitcoin and rely on it as a safe investment venture, the advocacy for encrypted currency has gained new meanings.

Bitcoin has long served people in countries relying on sending or receiving remittances since transactions involve lower taxes, more transparency, and quicker access. Anyone with a broadband internet connection and a device can manage their funds through crypto means according to Binance. This is valid even for people who weren’t previously invested in financial matters were drawn to this complex area due to the ease of being involved with crypto. This is just a reason why crypto caught on so well among El Salvadorians, without the numerous benefits provided by the cryptocurrency system that assist in the evolution of developing countries.

The number one cryptocurrency supporter, El Salvador, is again dominating the news with recently released plans to offer a Salvadoran passport to anyone down to offer Bitcoin or Tether worth $1 million. Nayib Bukele is a well-known supporter of Bitcoin, having previously poured sums as large as $120 million from the nation’s money into acquiring BTCs. The last similar investment occurred in July last year when the government achieved 80 bitcoins. “Adopting El Salvador Freedom” seems to be the next step in Nayib’s plan to make Bitcoin mainstream and make it the primary means of transferring remittances. But whether it’s a rational and wise move, a foolish, non-sensical proposition, or just a large-mass experiment remains under the question mark.

A week into El Salvador’s announcement

El Salvador declared on the 7th of this month the launch of the Freedom Visa program, the first initiative of this kind worldwide to date. According to their announcement, the program would provide citizenship and passports to 1,000 applicants per year, making donations worth $1 million in Bitcoin of Tether, contributing to the nation’s goal of gathering $1 billion in these cryptocurrencies. This initiative partakes in the government’s efforts to draw high-net-worth individuals to conduct business there and contribute to the nation’s economic growth, seeing the primary steps of the program unfolding from 2021, when Bitcoin was legalized. By donating, the offerors become eligible to receive the designation that allows them to make El Salvador their home.

“Experience freedom, security, and a BTC lifestyle”

The program’s slogan is just as unique as the endeavor, encouraging adherents and enthusiasts to make Bitcoin part of their daily lives and calling it the path to economic liberation. El Salvador’s plan doesn’t stop with the accommodation of high-net-worth individuals into the country but prolongs with attempts to reconfigure the state’s financial system.

It adopted the USD in 2001, replacing the Colon to attract foreign capital, decrease inflation rates, and consolidate the economy. After seeing all transactions carried out in USD, the nation seeks to transform the transactions conducted within or with the country as much as possible in Bitcoin or Tether.

The plans are expected to see the audience split into three camps: those advocating for the initiative, those who are neutral or laypersons, and the category that puts the program down. At the current moment, it’s safe to say that it’s soon to conclude where the dominant public sentiment is going and how the dynamics will change.

Criticism couldn’t be inexistent, and it mainly has to do with the price

As with any governmental initiative, skepticism and reticence couldn’t be avoided. The price is unjustifiably high for some critics and despite the enthusiasm of some representatives of the country like Adriana Mira, the Vice Minister of Foreign Affairs. The rep expressed on Twitter that the Visa welcomes and provides an unmissable opportunity for those willing to partake in the nation’s rebirth. Furthermore, other skeptics consider that not sufficient insights and information are offered about the program.

Others consider the move lacking a solid basis or have a misleading marketing strategy, looking to create too much fuss for a relatively weak offer. The residency offered has nothing to do with citizenship for them. Furthermore, a poll carried out in May of this year by the Central American University discovered that 71% of respondents considered Bitcoin inefficient and not doing any good for the nation’s economy. However, more factors could’ve contributed to the opinion, and a poll conducted today would likely result in other outcomes. More research is to be done, and questionnaires carried out for an accurate audience sentiment to be insighted.

Opinions differ, but the government’s reps are offering support on their web pages, through social media, and official means for those interested in participating in the country’s reinventing.

Other opportunities are on the table

The program doesn’t offer the opportunity to reside in the country and all the rights coming with the status but also opens the room for other possibilities of investing, such as BTC bonds. The government recently announced that it would issue this type of investment vehicle in the Q1 of the upcoming year. This endeavor is expected to lay the foundation of a Volcano-powered Bitcoin city.

The Digital Assets Commission has already approved the Volcano Bond. It assists the initial initiative announced in 2021 to have the city developed east of the nation and powered by a volcano-based thermal energy supply. The development will be constructed partly with $1bn in volcano bonds, according to the president’s statement back then.

The unfolding of the process

Applicants must deposit $999 in the leading crypto or Tether, go through the KYC, and await approval. If accepted, the deposit would equate to a $ 1 million BTC or Tether. Tether also represents a viable option, and some may ask why this investment is chosen instead of Ethereum, the second most popular crypto. The purpose of this inclusion is to leverage the technological support provided by Tether.

What’s more, the fees are payable in BTC or USDT. The pledged rebirth of the nation is to be made possible through the help of confident participants.

So far, the program has witnessed plenty of applications. If the purchasing pattern persists, the Freedom Visas could be all sold by the end of the year, as experts state.