In a move that, for anyone following the progress of cryptocurrencies, was truly inevitable, the world’s first country has adopted a digital asset as legal tender. From the Associated Press (AP):
“The tiny Marshall Islands is creating its own digital currency in order to raise some hard cash to pay bills and boost the economy.
“The Pacific island nation said it became the first country in the world to recognize a cryptocurrency as its legal tender when it passed a law this past week to create the digital ‘Sovereign,’ or SOV. In the nation of 60,000, the cryptocurrency will have equal status with the U.S. dollar as a form of payment.”
The Republic of the Marshall Islands (R.M.I) plans to distribute the SOV sometime in the near future through an initial coin offering (ICO). R.M.I. will cap the number of tokens at 24 million, representing the country’s 24 municipalities.
Israeli startup Neema is developing the technological framework to support the SOV and will oversee the ICO.
R.M.I. President Hilda Heine said in a statement that, as the name of the cryptocurrency suggests, the move is about preserving autonomy:
“This is a historic moment for our people, finally issuing and using our own currency, alongside the USD (U.S. dollar). It is another step of manifesting our national liberty.”
Spending SOV tokens will require users to first identify themselves on the blockchain, a requirement David Paul, minister-in-assistance to President Heine, says will solve the anonymity issue that has prevented mainstream adoption of cryptocurrencies.
“It was clear that there was a huge market need for a non-anonymous blockchain system that can operate within a regulated environment,” Paul told Reuters.
Barak Ben-Ezer, CEO of Neema, said in a statement that the SOV launch will mark “a new era for cryptocurrency” that will empower its users:
“SOV is about getting rid of the excuses why not to shift to crypto — it’s real money, and it provides the golden path between an open ledger and total anonymity, it gives users the power to decide when and what to disclose.”
Jehan Chu, co-founder of blockchain platform Kenetic, praised the move by R.M.I., telling AP that cryptocurrencies are simply the way of the future:
“Physical currency is going by the wayside as an antiquated, obsolete form of transacting.”
Still, and as Futurism pointed out, with governments now starting to wade into the digital asset waters, only time will tell how the situation plays out:
“Ultimately, the Marshall Islands could emerge as a shining example for others to follow on the road to legitimizing digital coins, or a cautionary tale illustrating what can go wrong when governments get involved with cryptocurrencies.”
The Homepage of Independent Media
It is a really good news. I am sure it will help other countries to learn from and implement it. It will a different way of raising money for a country and that gonna attract so many other countries to follow.
sure it will
Another government adopting the blockchain - cannot understand why anyone would choose to not participate in this market
Good news. I guess it's not decentralized, but good news
That is really cool. I hope to see them succeed! It would be a great example to the world of what be can done with crypto!
Looks like they will keep the usd : /
The emergence of crypto currencies is part of a logic of democratization of monetary creation, if formerly, the masters had the monopoly of the monetary creation, today the situation has changed, the development of computer technology works to rebalance this aberration, naturally, the intelligent states accompanied this movements and the others will be out of history.
I am getting worried as more countries are developing thier own "cryptocurrencies",wont this have an effect on the real cryptocurrencies that are decentralised?
Most of this country crypto are centralised,so am not sure if they have to be called even a cryptocurrency!
interesting stuff :) i'll keep an eye on this as it develops :)
Soon other country will follow and create there own crypto...
¿Y qué pasó con Venezuela? ¿Dónde dejan que el gobierno actual habla de implementar el petro como moneda oficial de ese país?
I love news like this. Decentralized currency (not saying this one is but...) will always be better than centralized currency.
I don't know but maybe we could use this coin as an alternative to USDT, maybe? If it's pegged to the dollar.
Thank you for sharing the good news
I think US soon will find Marshall Islands as a regime state, that "needs democratization" - lets hope not this time.
Iraq, Hussein, was about to drop trade in USD, and sell oil for Euros. once great ally, suddenly became horrible regime, that needed "democratization"
Libya, Kadafi, was in process of introducing new currency, Golden Dinar, backed by Libyan gold reserves, which disappeared, after US started "democratization" of Libya....
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Official currency is a great move. This is amazing news. Many more Marshall Islands to come in the future.
And thus the Federal Reserves looks for an excuse to re-aim the nukes...
i knew this day will come.
Its True when say “Physical currency is going by the wayside as an antiquated, obsolete form of transacting.”
I think the same, it time to pass to digital money