ISTANBUL

The Pacific island nation of Palau is planning to introduce digital residency for foreigners as “a way for businesses to use Palau’s physical location to transact business digitally,” the country’s president has said.

President Surangel Whipps Jr. has called on parliament to consider the Digital Residency Bill that appeals “to individuals and businesses that use cryptocurrency to transact,” local news outlet Island Times reported on Tuesday.

The move replicates the e-Residency system first introduced in 2014 by EU member Estonia, which offers access to “Estonia’s transparent business environment: a new digital nation for the world,” according to a statement on its official website.

It allows non-resident entrepreneurs from all over the world to start an EU-based company in Estonia and manage their business from anywhere, entirely online.

If the bill is passed, Palau will “offer a government-issued digital residency to non-resident citizens but it does not give residency physically to foreigners,” Whipps said.

“Palau does not currently have the capacity to start a technologically complex platform for digital residency, but the attached bill sets out a mechanism for swift action through a public-private partnership,” the president added.

He stressed that Palau “will comply with anti-money laundering protocols and weed out unscrupulous users.”

“The bill will enable Palau to diversify its economy and partner with proven private entry to manage the country’s digital platforms,” he said.