CitizenX Joins Forces With El Salvador to Expand Bitcoin-Backed Passport Initiative

Swiss tech firm CitizenX has partnered with El Salvador to broaden the reach of its innovative “Freedom Passport” program, offering a fast track to Salvadoran citizenship for wealthy individuals willing to donate $1 million in either Bitcoin (BTC) or Tether (USDT), a type of cryptocurrency designed to maintain a value of $1.

• CitizenX and El Salvador expand “Freedom Passport” program
• $1 million donation in BTC or USDT for citizenship
• Limited to 1,000 participants annually
• Salvadoran passport offers visa-free travel to 135-150 countries

How the Program Works

On May 23, 2025, CitizenX announced its collaboration with the Government of El Salvador to scale up the “Freedom Passport” initiative. This program requires a $1,000 deposit to start the application process, with the remaining $999,000 payable once the application is approved. It’s a strategic move by El Salvador to attract investors and entrepreneurs, aiming to inject up to $1 billion into its economy each year through this cap of 1,000 participants.

Benefits of the Salvadoran Passport

Holders of the Salvadoran passport gain more than just a document; they unlock access to 135-150 countries with visa-free or visa-on-arrival privileges. This “golden ticket” allows individuals to expand their global footprint, whether for business or pleasure, and El Salvador’s policy of allowing dual citizenship adds an extra layer of convenience.

El Salvador’s Bitcoin Policy Evolution

El Salvador made headlines in September 2021 by adopting Bitcoin as legal tender, setting itself apart as a leader in the crypto space. However, recent regulatory changes in January 2025, influenced by the International Monetary Fund (IMF), have restricted Bitcoin’s use for tax payments. Despite this, El Salvador continues to bolster its Strategic Bitcoin Reserve Fund, which now holds over 6,102 BTC valued at nearly $550 million as of March 2025. This fund, dedicated to holding Bitcoin to support economic policies, reflects El Salvador’s commitment to the cryptocurrency despite the rocky road it’s faced.

Risks and Considerations

The IMF’s involvement highlights the challenges of integrating cryptocurrencies into traditional financial systems. While El Salvador’s embrace of Bitcoin is commendable, it’s also a reminder of the volatility and economic risks associated with digital assets. The 2022 crypto market downturn exacerbated El Salvador’s debt crisis, showing the potential pitfalls of such initiatives. It’s a stark reminder that while Bitcoin and other cryptocurrencies hold the promise of financial revolution, they can also bring significant risks that must be managed carefully.

Global Trends in Crypto-Citizenship

El Salvador isn’t alone in this crypto-citizenship game. Countries like Vanuatu and Antigua and Barbuda have similar programs, with Vanuatu accepting various cryptocurrencies and Antigua and Barbuda accepting crypto as proof of funds. This global trend reflects the growing acceptance of digital assets in legal and financial frameworks. It’s an exciting development, showing how innovative countries are leveraging the power of blockchain to attract talent and investment.

Regulatory Scrutiny and Social Impact

Tether, a key player in the Freedom Passport program, has faced regulatory scrutiny, including a $41 million settlement with the CFTC in 2021 and ongoing investigations into anti-money laundering violations. Tether’s move to El Salvador raises questions about its influence on the country’s regulatory environment. Additionally, the relocation of major crypto companies like Tether and Bitfinex to El Salvador could have significant implications for local residents. Projects like “Bitcoin City” might sound futuristic, but they could also lead to displacement and other social issues. It’s crucial to consider the broader impact of these initiatives on the local population.

Key Takeaways

• What is the Freedom Passport program?

  The Freedom Passport program is El Salvador’s initiative allowing wealthy individuals to obtain Salvadoran citizenship and a passport in less than six weeks by donating $1 million in Bitcoin or Tether.

• How does the payment structure work for the Freedom Passport?

  A $1,000 deposit is required upfront, with the remaining $999,000 payable after the application is approved.

• What is the annual participant cap for the Freedom Passport program?

  The program is limited to 1,000 participants per year.

• What are the benefits of holding a Salvadoran passport?

  Holders gain visa-free or visa-on-arrival access to 135-150 countries, can live in El Salvador, open international bank accounts, and benefit from the country’s dual citizenship policy.

• How has El Salvador’s Bitcoin policy evolved?

  El Salvador adopted Bitcoin as legal tender in 2021 but later restricted its use for tax payments in 2025 due to IMF conditions, while continuing to build its Bitcoin reserves.

• What other countries offer crypto-based citizenship programs?

  Vanuatu and Antigua and Barbuda offer similar programs, with Vanuatu accepting various cryptocurrencies and Antigua and Barbuda accepting crypto as proof of funds.

Broader Implications

The Freedom Passport program is a bold experiment in leveraging cryptocurrencies for national economic growth. While it offers a tantalizing opportunity for wealthy individuals, it’s crucial to approach it with eyes wide open. The allure of quick citizenship and global mobility must be weighed against the economic and regulatory risks. As we champion decentralization and freedom, let’s also remember to scrutinize the fine print and consider the broader implications. In the world of crypto, the devil is often in the details—and sometimes, in the blockchain.

Moreover, the presence of companies with a history of regulatory issues in El Salvador could lead to an opaque regulatory regime, potentially fostering money laundering and other cryptocurrency-related excesses. Investors considering crypto-based citizenship should be aware of the tax implications in both their home and destination countries, and engaging legal experts with knowledge of cryptocurrency and international investment law is crucial for navigating these complexities.

As we navigate this exciting yet complex landscape, let’s keep our focus on fostering a financial revolution that’s inclusive, transparent, and sustainable. The promise of cryptocurrencies lies in their potential to disrupt the status quo and empower individuals worldwide, but we must remain vigilant to ensure that these technologies are used responsibly and for the greater good.