An official from the Marshall Islands in a post highlighted the country’s ambitions for a national Cryptocurrency project and it was posted just ahead of the Invest: Asia 2019 conference. The post talked about the issuance of Marshallese sovereign (SOV), a blockchain-based Cryptocurrency which will be distributed and operated by the Marshall Islands government. The country takes in almost $70 million as U.S. aid money every year to meet its expenses and now it wants to stop its reliance on U.S. aid. The Marshall Islands also passed a Sovereign Currency act in 2018, which will lay the foundation of a national digital currency, replacing the United States dollar as the primary currency. The Marshall Islands has been independent since 1979, however, until now the country uses United States Dollar as the primary form of currency. The USD is used for payments, debts, taxes, dues and public charges in the Marshall Islands.
Image source: bitcoinist.com
In the post, Minister Paul said that the choice of blockchain over a centralized system was made due to one simple reason. The country has a little over 50,000 people spread across 1000 Islands in the Pacific, and a centralized system would not be able to work. The minister said that the decentralized blockchain would offer compliance “baked into the currency protocol itself while maintaining privacy for individuals.” The minister also highlighted that the automation of system would help in lowering the cost of compliance obligation for the country than the current system, and will also help the country taking a proactive role in the global fight against money laundering and other financial crimes. The currency will also help in minimizing the cost of remittance services that are still very costly in the Marshall Islands. He said that with these measures, the country will also aim to protect the financial privacy of its people as far as it can.
Image source: edition.cnn.com
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