Many of you have likely viewed my videos and are aware of my strong support for El Salvador and President Nayib Bukele, who courageously challenged the global fiat system by adopting Bitcoin. Under Bukele's leadership, the country has seen a remarkable 90% reduction in the crime rate, a surge in tourism to record levels, and a shift towards freedom and prosperity. However, I believe in providing honest assessments, even if it invites criticism.
This week, El Salvador introduced "Adopting El Salvador," a program enabling 1,000 foreigners annually to donate $1 million in Bitcoin or USDT to attain residency with a path to citizenship. Astonishingly, this initiative seems out of touch when compared to the significantly lower costs of other citizenship-by-investment programs offering world-class passports. For a million dollars, one could obtain several passports and residencies in Latin America. It's perplexing who would opt for this program and spend money on it. El Salvador lacks a robust passport, and with Western backlash against the country's adoption of Bitcoin, the passport might even weaken further. El Salvador, still a third-world nation, is attempting to market its passport as if it were Singapore's.
The entire program is a turn-off for me because Bitcoin's ethos is inclusivity, not exclusivity. "Adopting El Salvador" only caters to a select elite group capable of investing a million dollars in the country, contradicting the principles embraced by the Bitcoin community. The community has been vocal on social media platforms, criticizing this program. El Salvador's major misstep is that, at a time when Bitcoin is gaining value, many Bitcoiners with newfound wealth and lucrative remote jobs are eager to establish residency, spend time in El Salvador, and invest in properties and businesses. Personally, I prefer securing residency ties before delving into business or real estate investments in a country.
The essence of greatness for a country or business invariably lies in its people. By not providing a mid-tier residency program akin to the Paraguayan model, El Salvador risks losing a significant pool of human capital. The absence of such an option may divert Bitcoin enthusiasts, who would have otherwise contributed to building the country's economy, to destinations like Buenos Aires, which offers a more attractive prospect.
The Bitcoin enthusiasts, often referred to as "plebs," who could have chosen El Salvador as their base for setting up businesses, are now potentially seeking alternatives. Unlike the wealthy investors willing to invest a million dollars for El Salvadorian citizenship, these Bitcoin enthusiasts might have actively participated in the on-the-ground development of the real economy. The prospect of an affordable residency program would likely have encouraged them to stay and contribute significantly to the country's growth. However, with the current program's exclusivity and high investment threshold, it seems that El Salvador may miss out on the more involved and dynamic contributions that a broader, mid-tier residency program could attract.
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