Marshall Islands Creates Non-Profit Organization to Help Implementation of National Crypto Asset
- The Marshall Islands create a non-profit organization for the creation of its cryptocurrency
- The goal is to have cheaper remittances with other regions
The Marshall Island (RMI) has decided to form a non-profit organization that will be supporting the government in order to create a virtual currency for the country. The information was released in a press release on June 4.
The Marshall Islands Supports The Creation of a Cryptocurrency
According to the blog post, the RMI decided to establish the SOV Development Fund in order to support the plan of the government to create a national digital currency. The new digital asset is going to be called Sovereign, this is why the new Fund is called SOV.
The fund will have a board of seven directors that will be appointed by the government. However, two of them are going to be nominated by SFB Technologies, the firm that is currently working on the SOV’s blockchain infrastructure.
The Minister in Assistance to the President, David Paul, explained that they are designing SOV without burdening the government’s finances. According to him, the digital asset is going to be funding itself. At the same time, Peter Dittus, Chief Economist for SOV; said that the SOV Development Fund’s mandate is to create a growing ecosystem around the digital currency.
There are several reasons to create a digital currency, one of them is related to the fact that RMI has very high costs for remittances, and being able to deal with them in a cheaper and faster way is a very important thing. Nonetheless, the International Monetary Fund (IMF) warned RMI about the risks of adopting a digital currency as a second legal tender. Indeed, the IMF urged the country to abandon this project.
Finally, every single user will be identified and regulatory agencies in the United States are going to have access to the information of each user.