Cryptocurrency is fast gaining momentum and popularity. People are trading all forms of assets for the cryptocurrency. The latest entrant into the market of Bitcoins is the Government of Vanuatu’s that has allowed citizens to be obtained using Bitcoins.
Buying a citizenship with crypto
It was good news for those wishing to obtain Vanuatu’s Citizenship after the Vanuatu information Center announced that any willing applicant could use Bitcoins as the form of payment. This becomes the first endorsement for citizenship to be obtained through cryptocurrency. This comes at a time when Bitcoins are continuing to gain more value each day. The aim of the Vanuatu government is to expose it to the world. This is a pivotal event in crypto history and history in general as this is the first ever time that individuals can obtain a full government citizenship with the use of bitcoins.
With Vanuatu’s citizenship requiring $200,000 to join you would require 44BTC to join. However, this amount is only at 44 BTC as long as Bitcoin is rebounding at $4600 level. This is a very tempting move to people who have invested in Bitcoins who want to explore the citizenship of other nations. The move is expected to attract nations like China, Russia among others.
Government support for the bitcoin
Vanuatu government has also supported VIC on the move to allow the use of Bitcoins in a letter written to the VIC chairman Geoffrey Bond. The managing director of the VIC quoted that “The fears that cryptocurrency is used for some illegal activities is not true. To clear the suspicion, it is important to note that Cryptocurrencies have a very clear ledger where you can trace its creation history and its trading. More to that Bitcoins are very safe to trade with and are not affected by other countries economic or political performance making them the best to use for trade. Therefore our intention to use Bitcoins is to provide flexibility in this world where international trading is hard due to currency differences. The use of cryptocurrency would only propel the country to the forefront of CIPs globally”.
The Vanuatuan government has made it clear that they are ready to work with anyone who would like to obtain a citizenship using bitcoins. As a matter of factor, Geoffrey Bond, who is the acting chairman of the Vanuatu Info Centre greatly supports the idea of receiving payments via bitcoin.
Mr. Geoffrey Bond, the VIC chairman, added that: “The past attempts to use Bitcoins as payments of Bitcoins never bore fruit because it was not politically supported. This current attempt has been successful because the government has supported the move. VIC is now encouraging payments via Bitcoins.” He added, “All Bitcoin transactions will be run in the Australias Exchange to ensure the requirements imposed by the Australian Financial Regulator.”
The Vanuatuan government sees this as a hugely important step towards launching the Vanuatu DSP to the front of global CIP’s. The Managing Director of the Vanuatu Info Center Network, James Harris, understands that there is a lot of skepticism in regards to cryptocurrencies, considering how they have been used for odd and activities that are not socially acceptable. However, it’s quite clear that all crypto transaction can easily be traced in a transparent manner. Therefore, Harris considers Vanuatu’s stance to be a very positive action for the crypto community as a whole and will ultimately help complicated financial transactions become more convenient in the future.
More exciting developments are expected to come
Christian Nesheim who was an advisor to the VIC about the investment in Bitcoins also said that “ the bold move by Vanuatu will give them a competitive advantage I the citizenship market” He went on to say that, “ Most of the Bitcoin investors like gaining profits without incurring very large Capital Gains Taxes. There have been very few crypto to real asset investment types in the past. However, the number is gradually increasing, and now with Countries starting to offer Citizenship for Bitcoins, the cryptocurrency will only become better. More to that Vanuatu’s move will see interests almost immediately after the launch.
There have been cases in the past when citizenships could be purchased with Bitcoins; however, the main difference in the Vanuatu situation is that it has actually been approved by the federal government, which is actively pursuing this exchange offer. Harris also noted that Vanuatu will direct a lot of efforts towards adopting this new technology and will work together with the Australian Exchange in order to fully meet regulatory and compliance requirements needed.
Such a unique move and open stance will definitely give Vanuatu a competitive edge in the citizenship and cryptocurrency market. As it currently stands, there are not many ways by which large BTC holders can use their gains without paying massive taxes. It so happens that Vanuatu’s tax rate is relatively low, making this a win-win situation for interested parties.
Currently, Vanuatu is the sole country that offers citizenships via BTC purchase. However, if the program sees broad adoption it is quite likely that other countries will follow in Vanuatu’s steps and the crypto industry will move forward thanks to more widespread acceptance and exposure.