Residency in the usual sense isn't the same thing as citizenship -- lots of people are citizens of one country and residents of another.

And while the initial set of benefits don't seem a lot like residency (except insofar as being eligible for a digital ID of this type -- in countries that offer them -- is, itself, typically something that requires citizenship or residency, so in a sense calling the program that provides access to it to non-citizen non-physical-residents "e-residency" may be reasonable on that basis alone), its overtly an initial "beta" set with planned expansion.