The South Pacific island nation of Vanuatu will accept payments in Bitcoin for its $200,000 citizenship program,becoming the first country to accept the cryptocurrency in return for citizen status.

Bitcoin is trading at $4,581 at current market rates, meaning Vanuatu’s citizenship by investment program would cost around 43.64 bitcoin.

Vanuatu is a member of the Commonwealth and citizenship provides visa-free travel to 113 countries including the UK, Russia and European Union states.

Vanuatu also advertises its low taxes for citizenship buyers, offering a second passport in a country that levies no capital gains or income taxes. Potential citizens don’t need to live in Vanuatu, or even visit the country once.

James Harris, managing director of the Vanuatu Information Centre Network said: “There remains some suspicion surrounding the use of crypto-currency in financial transactions, and some fears that it can be related to undesirable activities.

Source: businessinsider.com