☀️ Sun, sea and... NFTs?
🇵🇼 Pacific nation Palau is kicking off a digital residency scheme for so-called 'crypto-citizens.'
It hopes to revive its economy during COVID-19. But some are skeptical about what this means.
Here's what experts @PeterJHowson and @OJutel told us. 🧵👇
🇵🇼 Pacific nation Palau is kicking off a digital residency scheme for so-called 'crypto-citizens.'
It hopes to revive its economy during COVID-19. But some are skeptical about what this means.
Here's what experts @PeterJHowson and @OJutel told us. 🧵👇
1️⃣ Why is the scheme happening?
🛥 Palau used to be a magnet for tourists and welcomed about 100,000 yachting enthusiasts each year.
💸But COVID-19 restrictions mean people have stayed away - and Palau’s cash is drying up.
⚡️ Now, it’s turning to #crypto to boost its economy.
🛥 Palau used to be a magnet for tourists and welcomed about 100,000 yachting enthusiasts each year.
💸But COVID-19 restrictions mean people have stayed away - and Palau’s cash is drying up.
⚡️ Now, it’s turning to #crypto to boost its economy.
2️⃣ How does it work?
💰 For just $248, anyone anywhere can apply for a limited edition #NFT ID card.
⭕️ This means they can:
🇵🇼 Use a Palauan business address
📜 Apply to change their name legally
⚡️ Open online accounts to trade #cryptocurrencies
news.trust.org/item/202202040…
💰 For just $248, anyone anywhere can apply for a limited edition #NFT ID card.
⭕️ This means they can:
🇵🇼 Use a Palauan business address
📜 Apply to change their name legally
⚡️ Open online accounts to trade #cryptocurrencies
news.trust.org/item/202202040…
3️⃣ What’s the catch?
🇵🇼 So-called 'crypto-citizens' are not automatically residents of Palau.
They won’t be able to open a business there or become a Palauan national.
⚡️ But the scheme could prove handy for Chinese and other investors whose nations don’t allow crypto trading.
🇵🇼 So-called 'crypto-citizens' are not automatically residents of Palau.
They won’t be able to open a business there or become a Palauan national.
⚡️ But the scheme could prove handy for Chinese and other investors whose nations don’t allow crypto trading.
4️⃣ Is it harmful?
📚 Experts @PeterJHowson and @OJutel says this is classic 'North-South exploitation.'
⚡️ Crypto developers look for places like Palau suffering from debt crises and other disasters.
⛔️ But few end up supporting local services or paying any tax.
📚 Experts @PeterJHowson and @OJutel says this is classic 'North-South exploitation.'
⚡️ Crypto developers look for places like Palau suffering from debt crises and other disasters.
⛔️ But few end up supporting local services or paying any tax.
5️⃣ What about ‘crypto colonialism’?
🇺🇸 @PeterJHowson and @OJutel say developers are using Pacific governments to further the interests of U.S. platforms.
⭕️ They’re dangling blockchain as a fix for the islands’ problems while advancing "Silicon Valley solutionism."
🇺🇸 @PeterJHowson and @OJutel say developers are using Pacific governments to further the interests of U.S. platforms.
⭕️ They’re dangling blockchain as a fix for the islands’ problems while advancing "Silicon Valley solutionism."
6️⃣ Has this happened before?
🇪🇪 Estonia launched an e-residency program in 2014. But it has since become mired by crypto scams.
⭕️ @PeterJHowson and @OJutel warn that Palau’s crypto-citizenship scheme could suffer a similar fate.
news.trust.org/item/202202040…
🇪🇪 Estonia launched an e-residency program in 2014. But it has since become mired by crypto scams.
⭕️ @PeterJHowson and @OJutel warn that Palau’s crypto-citizenship scheme could suffer a similar fate.
news.trust.org/item/202202040…
🇵🇼 Palau hasn’t always been so crypto friendly.
⛔️ In 2019, the country banned cryptocurrencies like #Bitcoin, following the growth of scam-token Palau Coin.
But now, it could be changing tact. Is it for better or worse? @PeterJHowson & @OJutel weigh in.
news.trust.org/item/202202040…
⛔️ In 2019, the country banned cryptocurrencies like #Bitcoin, following the growth of scam-token Palau Coin.
But now, it could be changing tact. Is it for better or worse? @PeterJHowson & @OJutel weigh in.
news.trust.org/item/202202040…
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