World pioneers digital identity with e-residency rollout in Estonia
Hack the Planet: Estonia's Groundbreaking e-Residency Scheme
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It's no lie that Estonia is about to make history by launching the world's first supranational e-residency on December 1st. But instead of asking, "What in the Baltic Sea is this all about?", let's dive right in and find out how you, dear world citizen, can become an Estonian for a day (or forever, if you fancy).
Early last century, the Estonian poet Gustav Suits famously declared, "Let us remain Estonians, but let us become Europeans!" Seems our boy was on to something, 'cause now, regardless of your nationality, you can totally become an Estonian, well, digitally at least. And who needs borders when you've got Wi-Fi, right?
The lucky first e-resident to receive an electronic golden ticket will be none other than Edward Lucas, senior editor at The Economist, and a lifelong advocate for Estonia. Edward will be followed closely by Steve Jurvetson, a venture capitalist of Estonian descent, and his buddy Tim Draper, also from the world of venture capitalism.
So, what the heck is e-residency?
When Estonian President Toomas Hendrik Ilves hands over the first e-residency card, resembling a bank card, to Lucas, you're probably not alone in wondering, "Why the heck should I care?" Well, let us explain. As Ilves stated at the start of this year, "What got us here won't get us there." So the Estonians have been on a hunt for the next big thing, and they think they've found it.
Estonia, a country known for embracing technology like a kid with a new toy, kick-started its IT revolution back in 1996 with the "Tiger Leap," which catapulted it into the digital age. By the end of the decade, banks had introduced online banking. In the new millennium, they moved on to e-governmental services, and it's become commonplace for citizens to pay taxes, transfer money, vote, buy prescriptions, and sign documents online using digital ID-cards.
But what about the expats in this increasingly international nation? They had been left out in the cold, unable to reap the benefits of the digital revolution. That all changed when the first thoughts of issuing foreigners an ID-card—albeit a digital one—started to circulate. Now, thanks to advancements in technology and brilliant minds, the plan has gone from concept to reality, and it's about to launch.
Wait, wait, before you start booking that flight to Tallinn...
It's crucial to understand that the e-residency card does NOT provide a path to citizenship. Instead, it offers a digital ID that allows you to access Estonia's digital services online like a boss. But remember, this privilege can be revoked if you decide to engage in shenanigans.
What's in it for you, though?
Well, if you're an entrepreneur, investor, shareholder in an Estonian company, a foreign employee or family member, a scientist, a student, or a start-up entrepreneur, this could be a golden opportunity. Estonia has the potential to be attractive to entrepreneurs who need an investment account in the EU, as setting up a company here is a breeze, and the highly developed e-banking environment gives you immediate control of your assets from afar.
Including, might I add, tax-free profits. Yes, you read that right. Reinvested profits are tax-free in Estonia, making it a tempting proposal for those seeking tax havens.
The response has been enormous...
Since the application round was opened a few months ago, around 12,000 people from the US, Finland, the UK, Canada, and India have shown interest, with half of them stating that they'd like to create a company.
But Estonia ain't quite ready yet for those millions of digital expats...
To start with, applicants will have to physically travel to Estonia to collect their e-resident ID card. In the future, however, it's planned that a person can obtain it from an Estonian embassy or consulate abroad. The other issue is that potential e-residents are eager to learn more about Estonia's digital services and the country in general, but there's currently no one-stop information source available.
And let's not forget about the potential end of nation-states...
Australia's ABC News raised an interesting question: is this the beginning of the end of the nation-state? Ironically, the country that has been accused of being too nationalistic is now taking strides towards creating a borderless digital nation. Only time will tell whether this e-residency program will succeed as intended. But with a history of successful IT innovations, Estonia has a good reason to be optimistic.
So, what are you waiting for, world citizen? Grab your passport (or maybe your laptop?) and hop on the Estonian e-express!
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- The Estonian e-residency scheme, set to launch on December 1st, will allow people from around the world to become digitally Estonian, following the early 20th century sentiments of Estonian poet Gustav Suits.
- The first e-resident to receive an electronic golden ticket will be Edward Lucas, senior editor at The Economist, followed by Steve Jurvetson, a venture capitalist of Estonian descent, and Tim Draper, also from the venture capital world.
- The e-residency card, resembling a bank card, offers a digital ID that allows access to Estonia's digital services online, but does not provide a path to citizenship.
- For entrepreneurs, investors, shareholders, foreign employees, family members, scientists, students, and start-up entrepreneurs, this e-residency could be a golden opportunity, offering the potential for tax-free profits and easy company setup in the EU.
- Since the application round opened, over 12,000 people from various countries have shown interest, with half expressing a desire to create a company in Estonia.
- Initially, applicants will need to physically travel to Estonia to collect their e-resident ID card, but in the future, it's planned that the card can be obtained from an Estonian embassy or consulate abroad.
- There's currently no one-stop information source available for potential e-residents to learn more about Estonia's digital services and the country in general.
- With over 12,000 expressions of interest, the Estonian e-residency program has sparked questions about the end of nation-states, as Estonia, once accused of being too nationalistic, is now creating a borderless digital nation.
- The success of the e-residency program will depend on how well it can attract and serve global users, and only time will tell whether it will live up to its promising potential.
- Whether you're a world citizen seeking business opportunities, a technology enthusiast, or simply curious about Estonia and its digital revolution, the Estonian e-residency scheme is an exciting development to keep an eye on.
