Marshall Islands to Launch National Digital Coin

The Pacific republic of Marshall Islands is poised to release its own cryptocurrency, making it legal tender along with the current official fiat currency, the US dollar. Called SOV, from “sovereign,” the cryptocurrency will be launched via an initial coin offering (ICO) open to the public. The country’s parliament has already signed off on the project.

David Paul, minister-in-assistance to the president, told Reuters:

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

He added that Bitcoin and other cryptocurrencies tend to favor anonymous transactions, which is against banking standards.

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

Although the ICO space attracts speculators and scammers, local officials have decided to launch the token through a sale that will be open to the public. The government will offer 24 million tokens, which represent the 24 municipalities of the republic.

Paul also revealed that part of the ICO funds would be used to finance the state’s National Trust Fund, which is meant to help future generations. He told Bloomberg that some of the proceeds would pay for medical services for people whose health suffered as a result of nuclear tests the US carried out in the area in the 1940s and 1950s. Currently, about 70,000 people live in the Marshall Islands.

According to the government official, the state will collaborate with Israeli fintech Neema to develop the SOV.

Paul said the timing of the ICO launch had yet to be decided upon, but the pre-sale would start soon.

Earlier, it was reported that Venezuela was launching its Petro virtual currency in a pre-sale event. Elsewhere, Turkey and Iran seem to have similar intentions.