Marshall Islands to Launch a Sovereign Crypto Coin

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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 26 th February 2020 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 currency is going to be emitted by the island’s Ministry of Finance and launched through an Initial Coin Offering (ICO).

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.

Marshall Islands to issue own sovereign cryptocurrency

By Gertrude Chavez-Dreyfuss

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NEW YORK (Reuters) – The Marshall Islands will issue its own cryptocurrency that will be circulated as legal tender along with the U.S. dollar, according to one of the remote 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, said David Paul, minister-in-assistance to the president of the Marshall Islands, in an interview with Reuters late on Tuesday.

“This is the way of the future,” said Paul. “As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form.”

Plans for possible sovereign cryptocurrencies have gained momentum in recent months, as digital tokens launched by private companies have jumped in value. Several governments, including China, Estonia, and Iran, have discussed plans for their own digital currency.

Venezuela, meanwhile, has gone ahead with a new digital token called the petro, backed by oil. It raised about $735 million on the first day of its presale earlier this month but is not expected to attract significant investment.

Paul said the SOV will be issued to the public through an initial coin offering, a financing strategy that has become popular among startups looking to raise funds for their projects.

The country has capped the SOV supply at 24 million tokens in order to prevent inflation, Paul said. The 24 million tokens represent the Marshall Islands’ 24 municipalities, he added.

SOV will act like regular money, said the government of the Marshall Islands in a separate statement released late on Tuesday.

“This creates legal certainty for its use, because all jurisdictions have laws in place for dealing with legal tender, whereas private cryptocurrencies are dealt with differently in different jurisdictions,” the statement said.

The Marshall Islands is partnering with Neema, an Israeli financial technology startup, to issue the SOV, Paul said.

Paul said the government has not yet determined a launch date for the ICO but that a presale of the tokens to investors will start “soon”.

SOV is based on what the Marshall Islands government calls the “Yakwe framework”, which requires users to identify themselves on the blockchain, solving the anonymity problem that has plagued bitcoin and precluded its mainstream adoption.

Paul said that because bitcoin and other cryptocurrencies are anonymous, they are not compatible with the framework of a regulated banking environment.

“It was clear that there was a huge market need for a non-anonymous blockchain system that can operate within a regulated environment,” he said.

Part of the proceeds from the ICO will be used to help finance the Marshall Islands’ National Trust Fund, Paul said. The United States contributes to the fund, intended to support future generations.

The Marshall Islands launches a sovereign crypto coin

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