Not sure if this is more weird or distrusting...

https://www.theatlantic.com/technology/archive/2018/02/virtual-citizenship-for-sale/553733/

The Rise of Virtual Citizenship
In Cyprus, Estonia, the United Arab Emirates, and elsewhere, passports can now 
be bought and sold.

James BridleFeb 21, 2018
 
The Oval, a commercial property under construction in Limassol, Cyprus, in 2017 
Sean Gallup / Getty
“If you believe you are a citizen of the world, you are a citizen of nowhere. 
You don’t understand what citizenship means,” the British prime minister, 
Theresa May, declared in October 2016. Not long after, at his first 
postelection rally, Donald Trump asserted, “There is no global anthem. No 
global currency. No certificate of global citizenship. We pledge allegiance to 
one flag and that flag is the American flag.” And in Hungary, Prime Minister 
Viktor Orbán has increased his national-conservative party’s popularity with 
statements like “all the terrorists are basically migrants” and “the best 
migrant is the migrant who does not come.”

Citizenship and its varying legal definition has become one of the key 
battlegrounds of the 21st century, as nations attempt to stake out their power 
in a G-Zero, globalized world, one increasingly defined by transnational, 
borderless trade and liquid, virtual finance. In a climate of pervasive 
nationalism, jingoism, xenophobia, and ever-building resentment toward those 
who move, it’s tempting to think that doing so would become more difficult. But 
alongside the rise of populist, identitarian movements across the globe, 
identity itself is being virtualized, too. It no longer needs to be tied to 
place or nation to function in the global marketplace.

Hannah Arendt called citizenship “the right to have rights.” Like any other 
right, it can be bestowed and withheld by those in power, but in its newer 
forms it can also be bought, traded, and rewritten. Virtual citizenship is a 
commodity that can be acquired through the purchase of real estate or financial 
investments, subscribed to via an online service, or assembled by peer-to-peer 
digital networks. And as these options become available, they’re also used, 
like so many technologies, to exclude those who don’t fit in.

In a world that increasingly operates online, geography and physical 
infrastructure still remain crucial to control and management. Undersea 
fiber-optic cables trace the legacy of imperial trading routes. Google and 
Facebook erect data centers in Scandinavia and the Pacific Northwest, close to 
cheap hydroelectric power and natural cooling. The trade in citizenship itself 
often manifests locally as architecture. From luxury apartments in the 
Caribbean and the Mediterranean to data centers in Europe and refugee 
settlements in the Middle East, a scattered geography of buildings brings a 
different reality into focus: one in which political decisions and national 
laws transform physical space into virtual territory.

The sparkling seafront of Limassol, the second-largest city in Cyprus, 
stretches for several miles along the southwestern coast of the island. In 
recent years it has become particularly popular among Russian tourists and 
emigrants, who have settled in the area. Almost 20 percent of the population is 
now Russian-speaking. Along 28 October Avenue, which borders the seafront, new 
towers have sprung up, as well as a marina and housing complex, filled with 
international coffee and restaurant chains. The 19-floor Olympic Residence 
towers are the tallest residential buildings on the island, along with the Oval 
building, a 16-floor structure shaped like its name. Soon a crop of new 
skyscrapers will join them, including three 37- to 39-story towers called 
Trilogy and the 170-meter One building. Each building’s website features text 
in English, Russian, and in several cases, Chinese. China’s Juwai property 
portal lists other, cheaper options, from hillside holiday apartments to 
sprawling villas. Many are illustrated with computer renderings—they haven’t 
actually been built yet.

The appeal of Limassol isn’t limited to its excellent climate and proximity to 
the ocean. The real attraction, as many of the advertisements make clear, is 
citizenship. The properties are proxies for a far more valuable prize: a golden 
visa.

Visas are nothing new; they allow foreigners to travel and work within a host 
nation’s borders for varying lengths of time. But the golden visa is a 
relatively recent innovation. Pioneered in the Caribbean, golden visas trade 
citizenship for cash by setting a price on passports. If foreign nationals 
invest in property above a certain price threshold, they can buy their way into 
a country—and beyond, once they hold a citizenship and passport.

A luxury holiday home on Saint Kitts and Nevis or Grenada in the West Indies 
might be useful for those looking to take advantage of those islands’ liberal 
tax regimes. But a passport acquired through Cyprus’s golden-visa scheme makes 
the bearer a citizen of the European Union, with all the benefits that accrue 
therewith. Moreover, there’s no requirement to reside in or even to visit 
Cyprus. The whole business, including acquisition of suitably priced real 
estate, can be carried out without ever setting foot on the island. The real 
estate doesn’t even have to exist yet—it can be completely virtual, just a 
computer rendering on a website. All for just 2 million euros, the minimum 
spend for the citizenship by investment.

As a result, Cypriot real-estate websites are filled with investment guides and 
details on how to apply for a new passport. This is the new era of virtual 
citizenship, where your papers and your identity—and all the rights that flow 
from them—owe more to legal frameworks and investment vehicles than any 
particular patch of ground where you might live.

Cyprus is a compelling location for such international games. Strategically 
anchored in the eastern Mediterranean, the island has long been a coveted and 
contested territory. Through the centuries, it has been occupied by Frankish 
crusaders, Venetian merchants, and Ottoman raiders. Since the Turkish invasion 
of 1974, Cyprus has been divided into two territories: the strongly 
Greek-identified but independent Republic of Cyprus in the south and west, and 
the disputed Turkish Republic of Northern Cyprus to the east. Another former 
colonial power, Britain, maintains its own legal and independent territories on 
the island, the Sovereign Base Areas of Akrotiri and Dhekelia.

Power has often roosted here, poised to prey upon nearby territories. At one 
end of the island, fields of satellite dishes at NSA/GCHQ’s Ayios Nikolaos 
Station keep a close watch on the Middle East; at the other end, across the bay 
from Limassol, U-2 spy planes and RAF Tornadoes bound for Syria and North 
Africa roar out over the sea. In the case of the Limassol towers, that power is 
wealthy Russian and Chinese investors with an eye on accessing the European 
Union. Meanwhile, older residents of the city find themselves cut off from the 
sea, their homes overshadowed, and most of the profits from the golden-visa 
scheme disappearing into the pockets of law firms, developers, and politicians.

Juwai, the Chinese portal, casts a wider eye than just Cyprus. Its website 
hosts a side-by-side comparison of various golden-visa schemes, laying out the 
costs and benefits of each, from the price of the investment to how long buyers 
must wait for a new passport to come through. Not all the schemes are created 
equally. Cyprus’s neighbor Greece has one of the cheapest schemes going, with 
residency available for just 250,000 euros. But that’s only residency—the right 
to stay in the country—not local, let alone EU, citizenship, which can take 
years to obtain and might never be granted. Sometimes the schemes have gone 
awry, too. Some 400,000 foreign investors in Portugal’s 500,000-euro 
golden-visa scheme have been left in limbo by bureaucratic collapse, waiting 
years for a passport which was promised within months. Chinese homeowners have 
been forced to fly in and out of the country every couple of months in order to 
maintain short-term visas, despite having paid thousands for property.

Other real-estate schemes have fallen into disrepute thanks to even murkier 
political arrangements. A decade ago, a Kuwait-backed company set out its stall 
on the tiny Indian Ocean archipelago of Comoros. As Atossa Araxia Abrahamian 
explains in her recent book, The Cosmopolites, Comoro Gulf Holdings erected 
billboards along the seafront of Grande Comore featuring computer renderings of 
business parks and luxury apartment complexes designed to appeal to wealthy 
foreigners in search of passports. But the buildings never got off the drawing 
board. Instead, Comoros found itself entangled in a much shadier deal with the 
Gulf states. Having agreed to open up its citizenship to investors, the 
islands—or at least certain members of their government—received huge payments, 
mostly from the United Arab Emirates. But the passports, sent over in bulk and 
frequently surfacing on the black market, weren’t for Emiratis. Rather, they 
were for the Bidoon: the more than 100,000 people across the Gulf nations who, 
despite residing in the region for generations, have never been included as 
citizens, and are effectively stateless.

For years, the Gulf states have come under international pressure to address 
the issue of their stateless populations. The United Nations has declared that 
it wants to end statelessness by 2024. The market in citizenship provided a 
tempting opportunity to resolve the problem. Once again, people were given the 
chance to acquire the passport and associated rights of a place they’d never 
seen and where they probably never intended to live. In this case, however, 
they were more coerced than willing: Few Kuwaiti and Emirati Bidoon had ever 
heard of, let alone visited, Comoros. Many were tricked into accepting when 
renewing other documents, or had travel permits and driving licenses held 
ransom until they signed. While most have been allowed to remain in the Gulf, 
the acquisition of a passport means that troublesome Bidoon—particularly those 
agitating for better conditions—can be quietly shipped out of the country.

The legal frameworks of virtual citizenship invert and globalize the logic of 
the special economic zone—a geographical space of exception, where the usual 
rules of state and finance don’t apply. Special economic zones are one of the 
key innovations of global capitalism, stretching back to the British Empire’s 
treaty ports in China and Japan in the 19th century, and underpinning the 
hyper-accelerated growth of Shenzhen and Dubai in the 21st. Historically, 
they’ve been used to protect commercial interests and allow for wild 
experiments in industry and real estate, but increasingly they are being touted 
as a solution to issues of migration and citizenship.

In Jordan, where most of the 650,000 Syrian refugees are barred from jobs, the 
King Hussein Bin Talal Development Area has been set up on the outskirts of the 
sprawling Zaatari refugee camp. It is mandated to employ the refugees as a 
percentage of its workforce. The zone is the result of the Jordan Compact: an 
agreement between the Hashemite Kingdom and the European Union to provide jobs 
for refugees in return for special trade rules and access for European 
companies. Among the proposed launch partners are Ikea and the supermarket 
giant Asda, who will get access to cheap labor, and whose produced goods can be 
imported tax-free into Europe. The refugees, meanwhile, are required to stay 
where they are. Their position is akin to the passport-trading cosmopolites in 
one respect: They are subjects of the globalized economic system more than 
citizens of a nation.


Syrian children run along a road in the Zaatari refugee camp in Jordan. (Darrin 
Zammit Lupi / Reuters)
Other states are exploring ways in which they can adjust their own citizenship 
laws to benefit from shifting populations. The small Baltic nation of Estonia 
prides itself as the most wired nation on Earth, having spent decades investing 
in new technologies and structuring government policy to reward innovation and 
Silicon Valley–style disruption.

In 2014, the country started offering a slice of its citizenship as a digital 
service. Since then, it has registered more than 30,000 e-residents, who are 
permitted to open bank accounts, start companies, sign documents, and pay tax 
under Estonian jurisdiction and law. In 2017, a section of a data center in 
Luxembourg was declared sovereign Estonian territory to facilitate the 
country’s first digital embassy, which also functions as a secure, remote 
backup for all of the country’s digital records. The arrangement for 
e-residents themselves remains non-territorial: They gain no rights to live in 
Estonia, nor do they accrue any other kind of physical benefit. In the spirit 
of innovation, the Estonian government has unbundled the services expected of 
such an arrangement. It amounts to a virtual middle ground between citizenship 
and global residency.

The world is in the midst of the greatest movement of people since the end of 
the World War II, and the combination of increasing global inequality and 
climate change will only increase its pace. Two hundred million people are on 
the move now, and as many as a billion might become migratory by 2050. 
Citizenship, the only tool we have for guaranteeing rights and responsibilities 
in a world of nation-states, is subject to increasing pressure to adapt. 
Today’s virtual citizenship caters mostly to the wealthy, or the poor. Could 
tomorrow provide new opportunities for everyone? And if possible, will the 
results look more like what’s been done for the global elite or for the most 
disadvantaged?

For now, the weird enclaves of virtualized citizenship amount to an 
international, distributed version of gentrification—the urban scenario in 
which those with resources dramatically alter the social conditions in a city, 
with little benefit accruing to those who were there already, or cannot enter. 
The virtualization of citizenship mostly benefits those whose individual, 
state-sponsored sovereignty doesn’t match their personal wealth. At the same 
time, the same mechanisms that allow Chinese citizens to establish businesses 
in Estonia and legal residency in Cyprus, and thus the EU, also disempower and 
marginalize the stateless populations of Emirati Bidoon and Syrian refugees.

In principle, nothing would prevent the Estonian model from being generalized 
to other guarantors of state protection, including wider legal rights and 
health care, which are of more concern to the less fortunate. Estonia already 
runs its citizens’ health-care registry on the blockchain—the cryptographic 
record that underlies Bitcoin, but that can be applied beyond currency 
transactions to verify the authenticity of a record via computational “proof of 
work.” Blockchain health records allow both patients and medical practitioners 
to access and review their data, while securely tracking who has access to it. 
Independent groups are following suit, with start-ups such as Bitnation 
proposing a “peer-to-peer voluntary governance system” to replace the 
arbitrariness of birth as the decider of one’s citizenship. Blockchain 
governance could allow for the creation of virtual citizenship and autonomous 
communities distinct from territorial nation-states.

But how it would overcome the existing demands of those territories remains 
less clear. In a truly globalized world, freedom of movement would be a given, 
requiring neither proof of residency nor proof of work. For now, though, the 
combination of wealth and land, evident in both Cypriot apartments and undersea 
cables, remains the ultimate arbiter of human lives.



Sent from my iPhone

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