Palau has passed a new law that will offer digital residency to non-Palauan citizens.
President Surangel Whipps junior last Wednesday, signed the Digital Residency Identification bill into law, after it was initially defeated in the Senate earlier this month.
RNZ Pacific's Correspondent in Palau, Bernadette Carreon, said Palau is a tourism-depended nation and its revenues have taken a severe hit from the Covid-19 pandemic.
She said President Whipps junior sees the new law "as an opportunity to diversify the economy."
President Surangel Whipps Jr Photo: Richard Brooks
"He thinks that it will attract non-citizens to apply for digital ID which will cost a $US100 per ID but there's also a fee for applications which is $50."
However, she said the new legislation doesn't provide automatic citizenship to non-residents.
"The new law will allow non-citizens to be digital residents of Palau. It doesn't mean that you have to physically reside here," she said.
But she said it doesn't guarantee citizenship, but without a physical address you can apply for a digital residency ID, you can open digital accounts, you can start with a physical mailing address, start with a phone number," she said.
She adds the law is also not equivalent to having the same rights and privileges as a citizen.
"In the first place if you don't have Palauan blood you cannot be a Palauan citizen. It's not equivalent to rights as a resident.
Palau's national congress (Olbiil Era Kelulau) building. Photo: Supplied
You cannot apply for a bank account, you cannot apply for a driver's license, doesn't guarantee you that you are a physical resident of Palau. It's just a digital residency," she said.
She said she knows it's kind of complex but that's how they [Govt] explained the new law.
