The island of Vanuatu in the Pacific Ocean not too far from Fiji has become the first country in the world to accept bitcoin payments in exchange for becoming a registered citizen of the country. This comes amid the country’s financial benefits for those who identify are citizens of that island nation.
The development comes as Vanuatu is aiming to expand its reach in the technological world. This is also to raise more funds and to offer a distinct solution for managing payments.
Vanuatu is charging $200,000 USD for people to become full citizens of the country. Vanuatu is also accepting bitcoins and other cryptocurrencies as payment for the citizenship process.
Based on the current value of the bitcoin, it would cost a person at least 40 bitcoins to attain citizenship to the island nation. With the value of the bitcoin rising in recent time, there is a potential that a person could spend fewer bitcoins to attain citizenship. This would be to the general benefit of customers in many forms.
The chairman of the Vanuatu Information Centre states that the nation’s government is aiming to take part in new technological standards with cryptocurrency being one of the many points the country wants to participate in. The decision to accept bitcoin payments for citizenship is especially being promoted by the country as being an affordable solution for payment. This comes as the currency does not entail massive fees when used properly. This should give investors a better chance with getting into Vanuatu as citizens.
Regular checks of all transactions would still be utilized. This is to confirm the identity of any person aiming to use the bitcoin to attain citizenship. Although the bitcoin itself is a secure solution that is easy to trace and requires extensive bitcoin wallet acceptance, general checks are still being encouraged to see that people who use the currency are legitimately confirming their identities in the transaction process.
Also, bitcoin transactions would be run through the nearest possible exchange. In this case, it would be the Australian Exchange. This is to meet the requirements of the Australian Financial Regulator for managing payments with cryptocurrencies.
Vanuatu is located in the middle of the Pacific Ocean and has a population of around 270,000. It is being promoted as a viable place to be a resident of as it is a member of the Commonwealth, a grouping of 52 member states with most of them being former British colonies. Citizenship in Vanuatu ensures people can enjoy visa-free travel to 113 different countries around the world.
People who are citizens of Vanuatu will not have to pay any capital gains taxes or income taxes. Other taxes charged upon citizens in Vanuatu are relatively low when compared with other countries’ tax rates being issued.
Although other countries offer citizenship in exchange for money, Vanuatu is the first such country to offer it with the bitcoin as a payment option. Other countries that people could buy citizenship for include Dominica where $100,000 is required or Malta where a person can become a citizen for $750,000.
