Palau's Residency Program: Beginning Of Something Extraordinary Or An Opportunity For Scammers?

The West Pacific nation of Palau, in an announcement, revealed that it would be creating the first-ever residency program secured on the blockchain in the world.

The decision of the government also gained criticism from former President Johnson Toribiong. Palau’s legislators are being accused of hurrying the decision and not giving the decision due diligence.

However, Tim Draper, a venture capitalist and the first person to sign up for the program, believes it is the start of something “extraordinary.”

Last month, the West Pacific nation of Palau disclosed that it would be creating the world’s first residency program secured on the blockchain.

The digital residency was formed in partnership with Cryptics Lab and was opened to anyone in the world with an investment of $248. The residents will receive a non-fungible token ID card and entry to a digital-first economy, and the renewal is fixed on $100 per year.

In order to ensure that Palau maintains the rule of law and the nation’s reputational integrity, President Surangel Whipps explained that the residential programs would have the capacity for internationally recognized standards of verification. A whopping waitlist of 60,000 was recorded at the launch.

Critics Warn Nation Now On The Mercy Of Scammers

Nonetheless, the decision also gathered a fair amount of criticism. The government is being criticized for not giving due diligence and having brought the nation to the mercy of scammers and corruption.

The tourism industry of Palau and other such islands has suffered due to the pandemic, making them vulnerable to exploitation.

Commenting on the decision, the former President said that all deals, including good deals, need due diligence. Johnson Toribiong, the Former President, says, “Sometimes we take risks, but we could be dealing with shady people.”

It is being claimed that Palau’s legislators have not taken consequences and ramifications into account before signing such an important deal.

Tim Draper, a Venture capitalist, became the first resident to sign up for the program. Tim says he believes it is the start of something extraordinary that would be viral around the world.

The Ministry of Finance, which supervises the Digital Residency Office, validated that the ministry has raised funds worth $71,000 from over 700 people who had received a digital residency from the time of launch. Among these applicants, 40% were from the US, 30% from Europe, and another 30% from Asia, including China.

The digital residency will bring a potential diversification of the economy, which is of utmost need, especially after the pandemic’s destructive effect on our tourism industry, said the President explaining the practical benefits for the nation due to the program.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing