The Marshall Islands has now become the latest country to plan the launch of its own cryptocurrency; the island nation will now proceed to launch the Sovereign (SOV) to supplement the US Dollar as its official legal tender.
On February 26th, legislators for the Pacific island nation passed the Declaration and Issuance of the Sovereign Currency Act 2018, which reads “The purpose of this Act is to declare and issue a digital decentralized currency based on blockchain technology as legal tender of the Republic of Marshall Islands”.
According to Israeli technology news publication CTech, an Israeli startup – Neema – developed the underlying technology of the new cryptocurrency by leveraging a public protocol known as ‘Yokwe’.
The protocol is reportedly designed to link user accounts to government-verified identities in a bid to mitigate financial crime concerns and to operate within the parameters of ‘Know Your Customer’ laws.
The government of the island nation is now set to launch an Initial Coin Offerings, which it reportedly plans to use the proceeds thereof to bolster its own coffers ahead of the termination of US reparations payments.
The island nation presently receives some $30 million USD a year in compensation for that fact that the territory was used as a nuclear testing ground in the 1940s to the 1950s.
Presiding over the announcement, President Hilda Heine was quoted as saying that “this is a historic moment for our people, finally issuing and using our own currency, alongside the USD. It is another step of manifesting our national liberty.”
Whereas Venezuela’s new national cryptocurrency, the Petro, sees its price determined by the price of the country’s oil basket, the Sovereign’s price will instead be determined by market factors.
The Marshall Islands will be one of the first countries to officiate the launch of its own cryptocurrency. The nation joins Venezuela, while Kazakhstan, Russia, and Iran have now voiced interest in crafting their own national cryptocurrency.
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