El Salvador has become the first country to pass a bill that grants foreign investors the opportunity to obtain residency if they invest or purchase a certain amount of its national currency, the US Dollar (USD), as well as the popular cryptocurrency Bitcoin (BTC). The legislation, known as the Freedom VISA and Economic Residence Act, was introduced by the government of President Nayib Bukele and approved by the Legislative Assembly on June 4.
Foreign investors are now able to purchase either $150,000 worth of Bitcoin or $250,000 in US Dollars, both within 12 months, to apply for the legal residency rights of El Salvador. The residency status grants individuals the right to not only travel to and reside in El Salvador, but also obtain property in the country as well.
The legislation is aimed at encouraging foreign investments within El Salvador and giving individuals the opportunity to base themselves in this Central American nation. President Bukele has gone on record stating that this bill is about “generating foreign direct investments, jobs & taxes that will help El Salvador prosper”.
This new policy may serve as a prototype for other countries looking to attract foreign investments, and shows that El Salvador is open to exploring the use and benefits of cryptocurrencies. The Freedom VISA provides a unique opportunity for investors to get a leg up in an increasingly competitive environment.