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Alex Recouso
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Highlights
We live in the funniest timeline
E-RESIDENCIES ARE NOT REAL RESIDENCIES.
Here's what everyone gets wrong: digital residencies don't give you the same rights as migratory residency let alone citizenship.
Obviously, they don't come with the same liabilities as tax residency (imagine taxing people for belonging to a club lol)
So, what are digital residencies?
Basically they are programs that give you access to a government-issued digital identity and access to e-services:
🇪🇪 In Estonia, it's incorporating a company in the EU.
🇵🇼 In Palau, you could use the ID Document for crypto exchanges (KYC).
But after a regulatory crackdown from the US, now that's not even possible.
Right now, it's closer to using an EU youth card than an EU passport.
Sure, it is a different form of identity that, if accepted, might prevent sharing your original passport details.
But the amount of sovereignty programs like these have makes them more of a workaround for KYC than a long term identity solution.
Remember:
Citizenship > Residency > Digital Residency
Palau is a sovereign country, but it is part of the Compact of Free Association (CoFA) Settlement Bloc along with:
🇲🇭 Marshall Islands 🇫🇲 Federated States of Micronesia
What this means is that the United States provides defense, funding grants, and access to U.S. social services for citizens of these countries.
Plus, Palauan passport holders can live unrestrictedly in the USA.
Why would they offer a digital residency instead of a real one?
Palau would probably get kicked out if they were to offer a higher level of sovereignty (citizenship).
So getting an e-residency is like getting a membership to a club.
It might work for some people, but comparing it to citizenship is like comparing a horse to a Tesla.
