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Palau to offer Digital Residency via blockchain (NFT)

H

hkrlh1

New member
Nov 27, 2019
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#1
If you're a crypto user in a country that restricts trading, that's a big bonus
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Global citizens can claim digital residency backed by the Republic of Palau using blockchain. In other words, they can get some of the perks of residency on the island nation of 18,000 people without physically living there
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Approved applicants will be issued a physical and digital resident ID card, the latter in the form of a non-fungible token (NFT), a blockchain-based deed bestowing rights or privileges to the owner.
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https://decrypt.co/90243/why-island-nation-palau-going-crypto
Palau is also a non CRS country with territorial tax.

Could this be the answer to 0% tax-residency in the future?
 
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#2
Nice post, will have to dive deeper into it.
 
#8
Interresting.
I planned calling them this month but had no time if they would offer CBI for real citizenship.

However i can't imagine a price of just $200 even the island is broke like hell
 
#9
Interesting but there is not much information on discord channel, and according to my experience with Estonian e-residency, it seems too much smoke without fire...

For me, the capital world of crypto will be no doubt UAE - rich people with a huge voice on the table- which can anytime say ''NO'' to the rest of the world, no offense but Palau is irrelevant like me, it will be very hard for the Western World to accept 0% tax for individuals who never ever plan to live in that country.

It's a dream for anybody who thinks that paying 199 dollars for the registration and then $49.50 for shipping and handling will enable him to enjoy zero tax.

Another big cash out for Tim Draper exploiting the poor is likely
 
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#12
Sounds like a crappy and useless gimmick.

1. You wont be able to use it to open bank accounts or proof of address.
2. You wont be able to claim tax residency with this.
3. You wont be able to open a company with it.

So what can you use it for?
 
#13
NicolasMaduro said:
Sounds like a crappy and useless gimmick.

1. You wont be able to use it to open bank accounts or proof of address.
2. You wont be able to claim tax residency with this.
3. You wont be able to open a company with it.

So what can you use it for?
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And how did you come up with that conclusion when their docs say the exact opposite?
 
#14
hkrlh1 said:
And how did you come up with that conclusion when their docs say the exact opposite?
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Lets say you want to open a bank account. You would have to use your own passport, and then you would claim that your residency is in Palau. Then they would ask for proof of address, and then your idea is to sent in your Palau ID. Well that would not be accepted. So the conclusion is that you cant open a bank account.

So what else can you use it for? Tax residency? Having a digital residency(like Estonian Digital Residency) doesnt mean that its your tax residency. Your banks will still do CRS reporting to your home country, and they will never accept your Palau ID as proof of address/tax residency.

So it appears it a useless "e-residency" scheme where they hype it up by using blockchain (NFT).

If they can get 10.000 people to spent 200 USD it seems pretty decent. I wouldnt trust their "docs".
 
#15
NicolasMaduro said:
your idea is to sent in your Palau ID. Well that would not be accepted. So the conclusion is that you cant open a bank account.
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And why wouldn't it be accepted when it's a real document?

You can't compare this to Estonia E-residency, as that one doesn't give you any real residency, only access to certain e-services.

They're literally saying that this is for KYC, tax, bank accounts... your conclusions make no sense.
 
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#16
hkrlh1 said:
And why wouldn't it be accepted when it's a real document?

You can't compare this to Estonia E-residency, as that one doesn't give you any real residency, only access to certain e-services.

They're literally saying that this is for KYC, tax, bank accounts... your conclusions make no sense.
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Well first of all obviously it cant be used as proof of address, since there isnt an address on the card

Sorry, but its naive to believe that any bank will accept an ID from Palau as proof of address.

There is simply 0% chance.

Its nothing but a plastic card that some people will pay 200 usd for and then after realize they wasted their money
 
#17
From a quick glance, I can't tell if this grants actual residence in Palau or is just another waste of time like the Estonian e-residence. For the quoted price, though, I can't imagine it's a real, physical residence.

Either way, it's not very attractive. Even if you were to live in Palau, it's not exactly a good fit for everyone, with poor infrastructure, poor internet, and very limited flight connections. You better be very happy with so-so internet, modest living, and staying most of the year on a small island (granted it's probably very nice weather most of the time).

E-residences have no value. The Estonian one was an interesting experiment and for a moment it was possible to use it to open companies and bank accounts in Estonia. By now, most local banks have restricted their risk appetite so much it's practically hopeless.
 
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#18
The papers look great, but it's more complicated than in reality, but this program is a little different from Estonia,.

The goal here is to use and be accepted your NFT as a KYC certificate and cryptocurrency, probably the big one that will accept this will be Binance.

So this model will work like that.... with your NFT will open a bank account in Palau, connect with Binance account for example, and cash out the money... tax zero at source...from here things can get complicated depending on your personal case or not.

If they sort out the bank account and card remote....will be the best option on the market to cash out crypto zero tax and will take some time for western world to respond and block are the debit/credit cards from Palau in their territories.

Any way this can get very messy in 1-2 years assumes the programs work 100% and tax man from USA, UK, Germany, etc will request database from Palau or buy it, like German authorities buying the data from UAE to find out who are the citizens who don't pay the taxes.
 
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#19
While I'd gladly be proven wrong, there are no banks in Palau that will take on crypto investors (resident, non-resident, citizen, non-citizen - it probably doesn't make any difference). The whole country uses USD and is almost entirely reliant on US banks for access to the outside world. The banks cannot do anything that their US correspondent or parent banks aren't also happy with.

Banking is terrible all across the Pacific islands. The sector is dominated by a handful of US and AU/NZ banks. None of which have the knowledge or risk appetite to deal with this.

My guess is that these Palau ID cards are going to be only moderately more useful than those issued by the Principality of Sealand.
 
#20
Sols said:
While I'd gladly be proven wrong, there are no banks in Palau that will take on crypto investors (resident, non-resident, citizen, non-citizen - it probably doesn't make any difference). The whole country uses USD and is almost entirely reliant on US banks for access to the outside world. The banks cannot do anything that their US correspondent or parent banks aren't also happy with.

Banking is terrible all across the Pacific islands. The sector is dominated by a handful of US and AU/NZ banks. None of which have the knowledge or risk appetite to deal with this.

My guess is that these Palau ID cards are going to be only moderately more useful than those issued by the Principality of Sealand.
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That may be the case now, but this is their plan for the future.
The president itself said that their working with their US partners to make sure everyone is onboard with this. Let's see how it goes...

 
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