Vanuatu accepting Bitcoin for citizenship payments: Myth or reality?

BASSETERRE, Saint Kitts & Nevis - Dec. 18, 2017 - PRLog -- A number of European and Caribbean countries are offering their passports in exchange for investment in their economies. These countries compete for the attention of new wealthy citizens by making adjustments in their CBI programs, creating more attractive options. In the meantime, high net worth individuals are searching for innovative and reliable methods to multiply their wealth and safeguard it from economic crises. That is why cryptocurrency, including bitcoin, has become so popular. Let's find out if the two hot topics - citizenship by investment & bitcoin - can be combined, that is, if bitcoin, or any other cryptocurrency, can buy you a passport. In November 2017, for example, the authorities of Vanuatu, a Pacific island nation, started discussing the possibility of integrating bitcoin into public services payment system.

Key facts about cryptocurrency

Bitcoin has become synonymous with reliability and security. All bitcoin transactions are recorded by a special technology called blockchain, which means that payments are transparent and can not be corrupted. Any bitcoin transaction must receive at least six confirmations, which maximizes safety.

Since bitcoin first started to gain popularity and its trading volumes to increase, the authorities of some countries have considered its integration into the national settlement system. The government of Japan has already legalized bitcoin, allowing people to pay for goods and services with this virtual currency. Australia and other regulatory-friendly countries like Singapore, South Korea and Hong Kong may fully legalize bitcoin in the near future.

The Ministry of Justice of Antigua and Barbuda is reportedly developing its own draft law to implement bitcoin payments. The decision may have been influenced by online gambling mogul Calvin Ayre, and even the self-proclaimed "Bitcoin creator" Craig Wright. The wealthy Canadian Antigua-based entrepreneur predicts "a growing convergence of Bitcoin, online gaming, virtual reality and gamification technologies," and says that "progressive countries like Antigua are poised to take advantage of this convergence by developing a truly global services industry."

After the Cabinet of the twin-island Antigua and Barbuda met with a Antigua Leisure and Gaming Association delegation, they came to the conclusion that bitcoin would be able to bring the economy of the country to a new level.

"Here in Antigua and Barbuda, we know we are always very much front and centre of new developments; we are leaders, trendsetters in the Caribbean. <...> This new currency [bitcoin] is immutable; you can always go and trace transactions, so in the context of allegations of our country being involved in tax havens, it allows for better traceability." - said Minister of Trade and Consumer Affairs, EP Chet Greene.

The Bitcoin cryptocurrency might soon become an official method of payment for good and services, including citizenship by investment, in Antigua and Barbuda.

Bitcoin in exchange for citizenship: Vanuatu becomes a trend setter

Vanuatu can become the first country in the world to offer its passport for bitcoins. According to the head of the Vanuatu Information Center, Jeffrey Bond, the Development Support Program (DSP) will allow foreigners to qualify for Vanuatu citizenship through a one-time payment of approximately $200,000 – or through its equivalent in bitcoins.

According to the source, all bitcoin transactions must run through an Australian cryptocurrency exchange, which meets the requirements of the Australian financial regulations.

According to the DSP conditions, the investor needs to invest in the economy of the country at least $182,000 ($130,000 for a non-refundable contribution to the state fund, $2k for due diligence, and $50,000 in governmental fees). The cost of Vanuatu's passport, according to the current exchange rate at BitStamp ($14,919), reaches 12.2 BTC.

Advantages of Vanuatu citizenship

According to the Vanuatu Citizenship by Investment Program, the applicant has to make a significant contribution to the economy of the island state to get themselves and their family members a passport in return. The application process takes about 2 months. The passport is issued for a period of 5 years with a subsequent renewal for the same period.

Key features of the program:

1. There is no need to stay in Vanuatu before or after obtaining citizenship.

2. Complete confidentiality of the process.

3. Vanuatu is a safe country suitable as a backup plan in case of force majeure.

4. Tax optimization opportunities.

5. New opportunities for business development.

6. Possibility to keep one's assets in a reliable country.

7. Free entry to more than 113 countries, including the UK, EU countries and Singapore.

8. Social and political security, reinforced by Vanuatu's membership in the Commonwealth of Nations.

9. Citizenship is issued for life.

By introducing this tempting offer to investors, Vanuatu could strengthen its position in the fight for foreign investment. Bitcoin payments open new doors for investors, making Vanuatu a serious player in the market of investment immigration.

Technically, a number of our clients have already purchased citizenship with bitcoins, although the transaction wasn't made in bitcoin directly and went through exchange process first. This process takes more time and is slightly more costly than the usual procedure of registration, but, nevertheless, is possible to implement. Today, the bitcoin payment system for citizenship or permanent residence with bitcoins (or any other cryptocurrency) is in the early stages of development. However, it's expected that counties with CBI programs would soon start making changes to accept bitcoin as a valid type of currency.