El Salvador, the first country to adopt Bitcoin as legal tender, has partnered with stablecoin company Tether to announce a joint initiative called "Adopting El Salvador Freedom." Under this program, foreign nationals can obtain a Salvadoran passport by paying a hefty sum of $1 million in Bitcoin. The move comes as the government seeks to attract "visionary individuals" and high-net-worth investors.

El Salvador's journey into the world of cryptocurrencies began in 2021 when it made Bitcoin a legal form of payment, making it mandatory for businesses to accept the leading cryptocurrency. The government also launched a digital wallet called "Chivo" and incentivized citizens by offering a $30 sign-up bonus in Bitcoin. However, the decision faced backlash from Salvadorans who protested both the government's autocratic shift and the slow adoption of Bitcoin among the citizens.

President Nayib Bukele's decision to allocate millions from federal funds into Bitcoin proved to be disastrous as the cryptocurrency's value plummeted from an all-time high of approximately $69,000 in November 2021 to under $17,000 at the beginning of 2023. Despite this setback, El Salvador has attracted Bitcoin enthusiasts from around the world, with its tourism minister announcing a surge in traveler numbers due to the country's commitment to crypto.

Thursday's announcement marks a new phase in El Salvador's dedication to Bitcoin, fueled by President Bukele's claim of profitable returns following a recent price rally. Bukele's administration has long been in partnership with Bitfinex, an affiliated company of Tether, the world's leading stablecoin pegged to the U.S. dollar. Bitfinex received the first crypto license in El Salvador's regulatory regime and was chosen to assist in launching a Bitcoin-backed bond.

According to Tether, the new visa program enables individuals to obtain a Salvadoran passport with a one-time payment of $1 million in Bitcoin. The company refers to the payment as an "investment," but it remains unclear where the funds will be directed. The initiative aims to attract "visionary individuals" and high-net-worth investors. Interested applicants are required to pay a nonrefundable deposit of $999 in Bitcoin and Ether and undergo a "know your customer" process.

While El Salvador's commitment to Bitcoin has attracted crypto enthusiasts, there are concerns among Salvadorans about its impact on local communities. In coastal cities like El Zonte, where the crypto crowd has flocked, there have been reports of low-income families facing eviction for projects like the construction of the "Bitcoin Beach Club de Playa."

As El Salvador takes another step towards integrating Bitcoin into its society, the global crypto community watches closely to see if this bold experiment will yield long-term benefits or pose further challenges.