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The Republic Of Vanuatu Has Found A Pill From Poverty. Choose: Red Or Blue

17 August 2018 18:12, UTC
The Republic Of Vanuatu Has Found A Pill From Poverty. Choose: Red Or Blue
By Oleg Koldaev, Catherine Lange

Relations between state structures and the crypto market are not easy to form. The government does not have confidence in digital assets. Companies that manage virtual money do not have many proposals for budget directions of the economy. But for many countries in the world, close interaction with the digital economy can be a way out of the plight. The Republic of Vanuatu, that is a small island nation in the east of Australia, began to work with companies managing virtual assets to sell citizenship. At the same time, it is a demanded export commodity. Zero tax rates are a good competitive advantage. But the republic remains a very poor country, it takes the 134th place in the world out of 188 on the human development index.

The "Golden Passport" or "golden visa" is the program for obtaining citizenship in exchange for investment. The technology of this process is simple: a person contributes a certain amount to the state budget and receives a document confirming the right to live in the territory of a particular country. Such privileges are guaranteed to investors by many states. For example, in  Cyprus - 2 million euros, Portugal - 350 thousand euros, Malta - 250 thousand euros and even the UK - 2 million pounds.

Is it possible to acquire Vanuatu's "golden passport" for the crypto? asked the Minister of Internal Affairs of the Republic Andrew Solomon NAPUAT.

"Of course, we do not accept the cryptocurrency directly. This contradicts our legislation, "he said. - The official currency for payment is in US dollars. A person, that wants to pay by the cryptocurrency, should consult with agents appointed by our regulator. If they agree, he can transfer the cryptocurrency to the purse of the agent, so he will already be responsible for transferring money to dollars and pay to the government of Vanuatu. "

The authorities of the island want $ 180,000 for citizenship. It's 28 bitcoins. Inexpensive pleasure, if compared with European countries, and especially with global shelters - Cyprus and Great Britain.

"The honorable citizenship is given to people that were born outside of Vanuatu," continued Andrew NAPUAT. - Usually, the whole procedure takes approximately 30 days. But there may be unforeseen delays. "

The example of Vanuatu is indicative for two reasons. Firstly, the rapprochement between the state authorities and the crypto business is slow but still goes. It seems that the small island state is the only one in the world that interacts with operators of virtual assets within the framework of state cooperation. But this is just a beginning.

Secondly, this is another confirmation of the world trend that promotes a new economy “from poor countries to the rich ones”. For the first time captains of the world economy were in the role of slaves. This all is thanks to the inflated bureaucratic apparatus and excessive regulatory procedures. While the US SEC decides what to do with the crypto assets, the state of Vanuatu is already incorporating new technological solutions into its administrative practice. Despite the poverty, the economies of the developing countries are more flexible and faster.

Only the time will show how stable this phenomenon will be. However, here it would be nice to recall the words of many macroeconomists who predicted the crisis of the Western economic model due to the heavy social superstructure, complicated legal regulation and the hedonistic mood of mass consciousness.

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