The Marshall Islands will issue its own cryptocurrency to be used as legal tender alongside the US dollar, according to one of the Pacific republic's top officials.
The new currency will be called SOV, and its legal tender status has been approved by the country's parliament, David Paul, deputy president of the Marshall Islands, told Reuters in an interview. “This is the way of the future,” Paul said. “As a country, we reserve the right to issue currency in any form, be it digital currency or fiat.”
Plans to issue a state cryptocurrency began to be discussed after the rise in prices for digital tokens issued by private companies. According to Paul, the country limited the issuance of SOV tokens to 24 million to prevent inflation. He added that the 24 million tokens represent the 24 municipalities of the Islands.
The Government of the Republic also stated that the SOV will act like a regular currency. “This will create legal certainty for the use of this cryptocurrency, as all jurisdictions regulate only generally accepted means of payment, and cryptocurrency is treated differently in different jurisdictions,” the statement said.
The Marshall Islands is partnering with Neema, an Israeli financial technology startup, to issue the SOV. The government has not yet set a release date for the cryptocurrency, but pre-sales of tokens to investors will begin soon.
The government statement also noted that the problem with public rejection of cryptocurrency is that it is anonymous and is not compatible with a regulated banking environment. The Marshall Islands has attempted to address this issue by requiring SOV users to identify themselves on the blockchain.
The government also says that a portion of the proceeds from the ICO will be used to fund the Marshall Islands National Trust Fund.
According to https://asia.nikkei.com
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