Why the Island Nation of Palau is Switching to Crypto

The Republic of Palau today announced its partnership with Cryptic Labs to launch a digital residency program leveraging Cryptic Labs’ Root Name System.

Root Name System

The President Surangel S. Whipps, Jr. van Palau signed the law on digital residence on December 22. President Whipps stated the following in an interview:

“One of the things we wanted to do as a country is diversify our economy and create a financial center hub. As a small country, that is a challenge. But if you move digitally, it’s easy.”

Using Root Name System, citizens of the world can claim digital residency. This is backed by the Republic of Palau using blockchain. In other words, they can get some of the benefits of residency on the island nation of 18,000 people without physically living there. According to Cryptic Labs.

If you’re a crypto user in a country that restricts trading, that’s a big bonus. Cryptic Labs says its blockchain-based system enables secure ID authentication and access to Know-Your-Customer (KYC) features needed to run many platforms. The chairman emphasized that the idea is not to circumvent anti-money laundering or counter-terrorism regulations. He did this by stating that KYC procedures should be completed annually to maintain residency.

Changing paradigm

Approved applicants will receive a physical and digital ID card, the latter in the form of an NFT. This is a blockchain-based deed that grants rights or privileges to the owner. Cryptic Labs has not yet announced which blockchain will use the protocol. It has been said that the first phase of the program will only issue physical IDs, with the NFTs coming after launch.

Read Also:  The Movistar team falls into the abyss in the World Tour

Whipps says the partnership with Cryptic Labs has helped the people of Palau understand blockchain technology and its potential benefits. Still, he also voiced previous concerns the island nation had about crypto. Whipps said:

If you asked us a year ago if we would do something like this, we’d probably say no. Two years ago we said no cryptocurrency in Palau. We were taught that it is what the drug dealers and terrorists use.”

But according to the president, education and a new understanding of the economic benefits of blockchain technology have helped allay those concerns: “Hopefully, this digital ID will also help facilitate people to be part of the crypto community.”

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here