Remember The 'Passports For Bitcoin' Initiative In El Salvador? It's Not Going So Well

A new inquiry into public records has unveiled shortcomings in El Salvador’s "Freedom Passport" initiative, a program launched in December 2023 to attract high-net-worth Bitcoin BTC/USD investors by offering residency visas in exchange for significant investments.

What Happened: According to Diario El Mundo, the General Directorate of Migration and Immigration (DGME) has yet to issue any Freedom Passports, despite government goals of attracting 1,000 participants annually.

The program was designed to grant residency and citizenship rights to those willing to maintain at least $1 million in Bitcoin within their investment portfolio, aligning with El Salvador’s broader agenda of integrating Bitcoin into its financial system.

However, the DGME disclosed that no Freedom Passport had been issued between December 2023 and August 2024, directly contradicting prior claims from government sources.

Reports circulated on X (formerly Twitter) earlier this year suggested that at least two families and one Canadian investor had received their Freedom Passports, complete with unique identity documents (DUI), after contributing Bitcoin investments for social and economic development within the country.

Also Read: Coinbase CEO Brian Armstrong Says Next SEC Chair Should Apologize For The ‘Damage Done To The Country’ By ‘Frivolous’ Lawsuits

In February and March, the program reportedly issued passports to these investors within a four-to-six-week processing window.

The DGME's latest statement, however, contradicts these reports, stating that no such document has been processed or issued since the program's launch.

Application requirements for the Freedom Passport include creating an online account, submitting a non-refundable fee of $999 in Bitcoin, and then transferring $999,001 in Bitcoin to complete the evaluation process if approved.

Once issued, passports were to be distributed through Salvadoran consulates and embassies, but the absence of any processed applications raises questions about the program's management and transparency.

What’s Next: As the global digital asset landscape continues evolving, discussions on the impact of such government-backed initiatives will feature prominently at the Benzinga Future of Digital Assets conference on Nov. 19.

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