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The Government of Marshall Island is going to issue National Cryptocurrency, Sovereign

Mar 01, 2018 Posted /  6787 Views

The Government of Marshall Island is going to issue National Cryptocurrency, Sovereign

The Republic of the Marshall island is aiming to issue its virtual token, Sovereign to serve as a legal tender in supplement of US Dollar. An update was posted on the official telegram page of Sovereign stating that the nation intends to issue a legal tender based on Blockchain technology. As per the bill, the Ministry of Finance of the island will issue currency which will be introduced by Initial Coin Offering (ICO).

"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 Bill reads

In a telephonic interview with Bloomberg, the senator of parliament’s speaker,  Kenneth Kedi acknowledged that members voted in favor of the plan and approved it to be pursued. He further mentioned that it is unlikely to happen but the council can still object.

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The minister-in-assistance to the president, David Paul confirmed that the coin would be called Sovereign or SOV which will be issued in the current year. The Republic of Marshal issuing national cryptocurrency seems a move to strengthen local budget. The launch will be initiated in an Initial Coin offering (ICO), and exchanges will be part of it to trade coins on their respective platforms.

“This was specifically targeted for the long-term needs of the country,” – Paul

The Republic of Marshal is a collection of 1100 islands and islets in the Pacific with over 70,000 population. He further stated that a part of crypto offerings would be used to provide healthcare facilities to individuals affected by US nuclear tests conducted in the area years ago.

The Republic of Marshal is not the first of its kind to turn towards virtual tokens to supplement its funds. But it claims that it is different from rest.

Recently, Venezuela launched pre-sale of its oil-backed digital coin, Petro. As per U.S. Legislators, the controversial token is a source of evading international sanctions.

Whereas the Republic of Marshall differentiates Sovereign from Petro as the nation is a "close ally of the U.S," and value of the token will be ascertained by market forces, unlike Petro whose price is pegged to oil.

Countries such as Iran and Russia are also planning to explore benefits of state-issued cryptocurrency.

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Tags: cryptocurrency

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