There have been developments in the Marshall Islands that might have a major impact on how cryptocurrencies are views and regulated. The tiny island of 53,000 people is launching its own national cryptocurrency token dubbed the Sovereign Coin (SOV) which will be legal tender for citizens and businesses on the island.
This intrepid plan is being trailblazed by Israeli fintech company Neema. The project is a brainchild of CEO Barak Ben-Ezer who sought out sovereign nations that do not have their own currency to adopt the idea. Notably, The Marshall Island has been a republic since 1982 but it uses the US dollar as its legal tender.
Their President commented “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.”
Like most cryptocurrency projects, Sovereign coin will first be offered as an ICO which will be held later this year. However, unlike most cryptocurrencies, SOV will be based on a “Yokwe framework” that will make users’ identity known on the SOV blockchain, allowing for easily verifiable sources of funds while preventing criminal use cases.
Every Marshall Islands resident will receive a few SOV coin and global investors are allowed to participate in the ICO as well. Revenue generated from SOV will be used for the benefit of the Island nation.
The Marshall Islands’ government is staying ahead of the curve when it comes to tech adaptability. They plan on using blockchain technology to revolutionize the nation’s licensing, ownership, and voting systems. This might have a cascading effect on the adaptability of crypto throughout the governments of the world. Iran and Israel have also expressed similar interest while Venezuela has already issued Petro, which is a cryptocurrency purportedly backed by barrels of yet-to-be-drilled oil.