The Reason Why Marshall Islands is Launching ‘Sovereign’ Cryptocurrency
More and more countries are launching their own cryptocurrency. Is it because of their financial problems or just to align with the others?
The Republic of Marshall Islands, which is located in in Oceania has suggested that is planning to launch Sovereign tokens, or SOV, in order to create their own legal reserve besides the U.S. dollars.
The declaration of the Sovereign Currency was submitted on 26th February 2018 at the Legislators for the Pacific Island Nation. According to the document, “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”.
The Marshall Islands’ President, Hilda C. Heine stated for Finance Magnates 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.“.
She added that “The RMI will invest the revenues to support its climate change efforts, green energy, healthcare for those still affected by the US nuclear tests, and education. In addition, SOV units will be directly distributed to citizens.”.
“The first nation to adopt a transparent crypto monetary system”
According to Finance Magnates, the Sovereign currency will be based on “Yokwe framework”. This provides anonymity, security and the suitable algorithm to solve the problems offline.
The Minister David Paul, replied that “The Marshall Islands is the first nation to adopt a transparent crypto monetary system, and we are proud of it. We are making our economy more resilient and payments more transparent”.
Neema supports the Marshall Islands’ project
The company that will support the Marshall’s international crypto transactions is going to be an Israel startup, named Neema. The company’s CEO and Founder, Barak Ben-Ezer has shown his excitement in online media about their new collaboration, mentioning that “We all dreamt of this day, when the first country goes crypto”.
Ben-Ezer added that “Once we achieve success, the SOV will bring us several steps closer to a free, more liberated world. In which money flows peer to peer, instantly and cost effectively, and no ruler can arbitrarily print more of it.”.
70% of the funds will be allocated to compensate the debts
According to CTech, the national authorities intend to use 70% of the revenues earned due to this project to compensate the debts they have to the US state ($ 30 million a year). Ten percentages will be approved for the implementation and development of the sustainability projects, and the rest of the revenues will be allocated to the Marshall Islands’ citizens.
The Republic of Marshal Islands is not the first country to launch a national cryptocurrency in order to solve its financial problems. However, the Marshall’s authorities strive to make the project a successful one.