Palau to introduce ID NFTs for its digital residency program
The Republic of Palau said it would grant identification cards to its digital residents in the form of NFTs. The ID NFTs are minted on Binance’s BNB Chain. They would be used to provide access to digital banking, for Know Your Customer (KYC) functions, as verified on-chain signatures and as a valid alternative to the government-issued IDs.
Palau’s Root Name System (RNS) Digital Residency, designed in collaboration with California-based Cryptic Labs, was first announced in January this year.
The digital residency program allows beneficiaries to enjoy the perks of residency in Palau without actually having to live there. For instance, the program grants a legal ID backed by the blockchain, access to global business opportunities, and government protection to aid in remote business formation and operation. It also allows users to gain an address, shipping services, and digital signature verification.
Thanks to Cryptic Labs’ RNS, the digital residency program uses end-to-end encryption, which lets users control how much location and ID data they want to share with others.
During an interview following Palau’s initial announcement of the digital residency program in January, President Surangel S. Whipps Jr. revealed that the program presents Palau with an easier way of diversifying its economy and establishing itself as a financial hub.
Binance CEO Changpeng Zhao (CZ), who was present at the unveiling ceremony of the ID NFTs on Friday, said, ‘We will definitely explore further investment in the Palau ecosystem. We have already expressed our interest in, outside of crypto, traditional financial service sectors, including payment services, digital banks, etc.’
CZ also complimented Palau as a ‘very good prototyping ground,’ adding that small countries like Palau can move quickly with innovation.
Photo: Cryptic Labs RNS ID