This Pacific island country is the first to allow the purchase of citizenship with Bitcoin for only 41 coins

Recently, Vanuatu, an island nation in the South Pacific, announced that its investment immigration program will allow foreigners to obtain citizenship by paying $200,000, or the equivalent in Bitcoin. As of press time, the price of Bitcoin is about $4,872, and it only takes about 41 Bitcoins to buy Vanuatu citizenship.

Vanuatu is a Melanesian archipelago consisting of 83 islands (68 of which are inhabited) with a population of about 220,000. As a former British-French colony, Vanuatu declared independence in 1980. Its name means "our land".

Vanuatu is also one of the easiest countries to immigrate to in the world. It only takes half a month to one month from submitting an application to becoming a formal citizen and obtaining a passport. According to the business news website Business Insider, as a member of the Commonwealth, Vanuatu citizens can travel visa-free to at least 113 countries, including the United Kingdom, Russia and other EU countries.

Vanuatu was hit by Cyclone Pam in 2015 and has since entered a long recovery period. The newly opened investment immigration program is seen as one of the means to rebuild the local economy. In addition, Vanuatu has also vigorously promoted the local low tax rate. However, applicants for the program are still subject to review by Vanuatu's Financial Intelligence Unit, and applications from people with criminal records will not be approved.

Geoffrey Bond, chairman of the Vanuatu Information Center, which handles immigration programs, said: "Although there have been attempts to use Bitcoin to invest in citizenship programs in the past, these efforts have never gained political acceptance and ultimately failed. In this case, the Vanuatu government has clearly expressed its willingness to embrace new technologies and encouraged the information center to accept Bitcoin as payment."

According to Bond, all Bitcoin transactions in the project will be conducted through their partner, an Australian exchange, and will be regulated by Australian financial institutions.

James Harris, director of the information center, also said: "Although many people have doubts about the application of cryptocurrency and worry that it will be used for bad activities, in fact, digital cryptocurrency transactions have complete and traceable records, and the entire process of its derivation and transaction is clearly visible."

However, it is worth noting that Bitcoin is currently facing a crackdown by regulators in many countries. South Korea will ban all forms of token financing, and Russia has also announced a ban on websites that provide Bitcoin. By the end of this month, Bitcoin trading in China will also gradually withdraw. The China Internet Finance Association issued another document in September, pointing out that virtual currency is increasingly becoming a tool for illegal and criminal activities such as money laundering, drug trafficking, smuggling, and illegal fundraising. The resulting financial and social risks cannot be ignored, and investors should remain vigilant.