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In June 2021, El Salvador passed laws allowing people to invest in Bitcoin, and use their investment as a form of residency. This innovative ‘freedom VISA’ is part of El Salvador’s push to create an ecosystem of economic inclusion.
The law sees Bitcoin as a legal tender, and allows citizens of El Salvador to use their investments to become citizens. With residency in El Salvador, said citizens are given the same rights as traditional citizens, including access to the El Salvador social safety net.
The investment also gives these citizens access to educational, healthcare, and financial services, in addition to access to the local economy and banking system.
The idea was created as an attempt to reduce poverty, create employment, and boost El Salvador’s economy. Elon Musk, founder of Tesla, and Jack Dorsey from Twitter, have already shown their support for the initiative.
It remains to be seen whether the law will be successful in stoking economic growth, or whether it will simply open up El Salvador to potential money laundering attempts. But so far, the idea has many backing it and only time will tell how well it works out.