"Crypto and Golden Visa"

With the rapid growth of digital assets, particularly stablecoins, there is a need to rethink the concept of "capital" within the context of investment programs such as Portugal's Golden Visa. Stablecoins, which are stable digital assets tied to fiat currencies, offer a new opportunity to attract investments in an innovative and secure way. Their acceptance as a currency for making investments under the Golden Visa scheme— namely in investment funds—would revolutionize the immigration and investment landscape in the country.

Unlike volatile cryptocurrencies such as Bitcoin, stablecoins maintain parity with traditional currencies like the euro or the dollar. Their stability is being recognized globally, with the European Union developing regulations like the Markets in Crypto-Assets (MiCA) — in effect since June 2024, with an 18-month implementation phase — that aim to integrate these assets into the traditional financial market. This legislative evolution could make certain types of stable crypto assets a reliable and secure alternative to traditional capital.

Allowing the use of stablecoins to make Golden Visa investments would attract a new generation of digital investors, positioning Portugal at the forefront of financial innovation and as a global hub for digital capital. With the increasing digitization of the economy and the expansion of technologies like blockchain, cryptocurrencies have moved from a peripheral role to the center of global financial markets.

This exponential growth of digital assets has created investment opportunities that were unimaginable just over a decade ago. The residency-by-investment program (Golden Visa) was originally designed to attract traditional investments, such as real estate and capital funds, using fiat currency. However, the growing relevance of crypto assets raises questions about how the scheme can be adapted to today’s reality.

Now that crypto is playing a crucial role in the financial system, there is a need to update the legislation to integrate it as a legitimate form of capital. However, this adaptation presents challenges, such as the lack of clarity on the acceptance of cryptocurrencies as eligible capital, the conversion to fiat currency, and compliance with international capital transfer requirements—an essential requirement of the residency-by-investment program.

Adapting the scheme means modernizing regulations and creating a clear and balanced legal framework that can keep up with financial innovation while maintaining the security and integrity of the system. Today, cryptocurrencies are increasingly used as viable payment methods and forms of investment capital. Companies such as Microsoft and BMW, as well as governments like Switzerland’s Lugano Canton, recognize the value of these assets in the global financial portfolio, allowing, in this specific case, the payment of taxes and municipal fees with Bitcoin.

Portugal can now choose either a conservative approach or assume a unique leadership position in adopting digital assets, fostering a new cycle of economic growth driven by innovation and openness to global investment. It is time to reposition the country as a safe and attractive destination for investors worldwide.