Digital citizenship and what benefits it gives

In the era of global digitalization and increased control over financial flows, many states are introducing systems for automatic exchange of information about citizens’ foreign accounts.

For example, Ukraine began to receive information about the foreign accounts of its citizens in 2024; now the status of accounts abroad is available to the tax service.

In addition, journalists who do not always correctly use the received data in their publications also gain access.

In these conditions, more and more people are looking for ways to maintain financial privacy. One such solution is digital citizenship.

What is digital citizenship?

Digital citizenship is a status granted by a state or organization that allows an individual to obtain certain rights and privileges in the digital space without the need for physical presence in the country.

It provides access to a variety of services, including financial, educational and business opportunities, while maintaining a high level of privacy.

Who can obtain digital citizenship?

Almost anyone who meets the established requirements can apply for digital citizenship. Typically the process involves registration, verification of identity and, in some cases, payment of a fee.

Benefits of digital citizenship:

• Privacy : Digital Citizenship holders can protect their financial data from unnecessary scrutiny.
• Access to services : Ability to use banking, educational and other services in a digital format.
• Global mobility : Simplified access to international markets and the ability to do business without being tied to a specific jurisdiction.

Example: Dominica Digital Citizenship

The Commonwealth of Dominica, in collaboration with cryptocurrency exchange Huobi, has launched a digital citizenship program, providing foreigners with the opportunity to obtain a Dominica Digital Identity (DDID) and a Dominica Digital Token (DDT).

Benefits of Dominica Digital Citizenship:

Dominica Digital Citizenship holders are entitled to use local banking services, including:

• Opening bank accounts in Dominica
• Processing loans on preferential terms.
• Registration as a digital service provider.

Steps to obtain Dominica digital citizenship:

Registration on the Huobi platform: Create an account on the Huobi cryptocurrency exchange using a valid email address and phone number.

Passing verification (KYC): Provide the necessary documents to confirm your identity, such as a passport and proof of residential address.

Receiving DDID and DDT: Upon successful verification, you will receive a Dominica digital identity and tokens confirming your status as a digital citizen.

In addition to Domenica, you can also obtain digital citizenship here:

• Estonia – provides electronic residency (e-Residency), allowing foreigners to conduct business and use digital services in the EU.

• El Salvador – offers a “Freedom Visa” for investments in Bitcoin, recognizing the cryptocurrency as an official means of payment.

• Vanuatu – provides citizenship by investment, allowing access to financial and legal privileges in offshore jurisdictions.

• Liberland is a blockchain-based micronation that offers digital citizenship to its residents around the world.

Digital citizenship is becoming increasingly relevant in today's world, providing unique opportunities to protect privacy and expand access to global services.