CitizenX and El Salvador Double Down on Bitcoin Passport Gamble—Because Fiat Was Too Mainstream

El Salvador’s Bitcoin experiment takes another wild turn—this time with digital identity startup CitizenX. The partnership aims to turbocharge the country’s Bitcoin-backed passport program, letting holders stake BTC for citizenship perks. Because nothing says ’freedom’ like locking crypto in a nation-state’s vault.

Why This Matters: The move signals El Salvador’s relentless push to rebrand as a crypto haven—despite IMF side-eye and bond market jitters. CitizenX brings decentralized ID tech to the table, but skeptics whisper ’volatility risk’ when passports ride BTC’s rollercoaster.

The Bottom Line: When your passport’s value swings 20% before breakfast, at least the adrenaline beats fiat’s slow bleed. Bonus jab: TradFi bankers suddenly remembering they ’always believed in blockchain’—right after their third margarita.

El Salvador and CitizenX Launch the World’s Fastest Bitcoin Citizenship Program

The Freedom Passport program is managed through CitizenX’s secure, private platform, which is integrated with El Salvador’s government systems and uses Tether’s technology and infrastructure for efficient payments and due diligence, making it the fastest citizenship-by-investment process globally.

With this process, successful applicants receive their passports in less than six weeks, with family coverage extending to spouses and children under 18.

Also, the $1 million donation is structured so that only a $1,000 deposit is required upfront, with the remaining $999,000 payable after approval.

According to the announcement, applicants must provide standard identification documents, proof of address, birth certificates, police clearance certificates, and proof of funds.

El Salvador Freedom Passport is positioned as a new approach to sovereign financing, connecting the nation directly with like-minded individuals who believe in its future.

The government has capped the program at 1,000 participants per year, targeting a total capital raise of $1 billion if all spots are filled.

Notably, the Salvadoran passport offers visa-free or visa-on-arrival access to 135–150 countries, including the Schengen Area, the UK, Singapore, and Hong Kong.

Passport holders can live in El Salvador, open international bank accounts, and benefit from the country’s dual citizenship policy without restrictions.

El Salvador’s Bitcoin Policy and Global Context of Crypto Citizenship

In September 2021, El Salvador became the first country to adopt bitcoin as legal tender, a move championed by President Nayib Bukele.

To support this vision, the government established the National Digital Assets Commission (CNAD) to oversee digital asset providers and issuances. In 2023, it passed the Digital Assets Issuance Law to create a comprehensive regulatory framework for digital assets beyond Bitcoin.

Despite initial ambitions, using Bitcoin as a legal tender faced implementation challenges and macroeconomic concerns.

In January 2025, following conditions imposed by the International Monetary Fund (IMF) as part of a $1.4 billion financial assistance program, the government and Legislative Assembly abolished Bitcoin’s status as legal tender for tax payments and confined its use to voluntary private-sector transactions.

However, El Salvador has continued to build its Bitcoin reserves, with the government’s Strategic Bitcoin Reserve Fund holding over 6,102 coins valued at nearly $550 million as of March 2025.

The government has pledged to the IMF not to increase its Bitcoin holdings further within the overall public sector. Still, recent purchases by the National Bitcoin Office have maintained the country’s commitment to cryptocurrency as a strategic asset.

El Salvador has approved amendments to its Bitcoin laws, aligning with a deal struck with the IMF to scale back its crypto exposure. #ElSalvador #Bitcoinhttps://t.co/2BDlo3RCGg

Globally, other countries have explored crypto-based citizenship and residency programs. Vanuatu became the first nation to accept Bitcoin, USDT, Ethereum, and Bitcoin Cash for its Citizenship by Investment (CBI) program. It offers citizenship in as little as 30 days for investments starting from $115,000.

Vanuatu’s program is recognized for its speed and efficiency, and it provides visa-free access to over 94 countries, zero personal and corporate taxes, and a pathway to Australian permanent residency.

Antigua and Barbuda also accept cryptocurrency as proof of funds for its CBI program, although the final investment must be made in fiat currency. These programs demonstrate a growing trend of countries leveraging digital assets to attract investment and talent.