Palau has signed up with the company Cryptic Labs to launch the Digital Residency program, signed into law in December.

According to a press release issued jointly by the Palau government and Cryptic Labs, it states that Palau has “joined hands with Cryptic Labs, an innovative blockchain research institute and commercial accelerators, and announced today the launch of Root Name System (RNS), the world’s first sovereign-backed digital residency program” or digital identity program.

“This launch marks the first time global citizens can claim blockchain digital residency backed by a sovereign entity, which acts as a digital identity with the functionality and validity of global sovereignty.” States the join press release.

The digital residency law was enacted in December with an urgency which President Whipps said that “Being a first-mover provides us the advantage that people will know that it’s available, and we can tap into those markets that are out there that may need this service. So there are countries that may be the digital exchange won’t be available in their countries.”

The law allows the Ministry of Finance to select a private party to administer the digital residency program and the President is authorized to negotiate the “Operating Agreement” with the private party to administer the program.

The law exempted the selection of the “service provider”, in this case, Cryptic Labs from the procurement process.  Cryptic Labs made a presentation on the digital residency program to Palau Congress in November of last year before Congress passed the bill in December.

An MOU with Cryptic Labs was signed in Los Angeles on December 6 and the bill became law on December 22nd.

The law charges $100 for the digital ID, renewable every year, and is one of the innovative economic plans President Whipps envisioned will diversify Palau’s economy.

“This partnership with the Republic of Palau will revolutionize economic development both in Palau and around the world.  Palau’s unique angle of entry to the digital economy will enable them to leapfrog legacy government services to meet the needs of global citizens.”  Bril Wang, CEO Cryptic Labs.

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